The New Housing Policy

The coalition announced a new housing policy at the lor week end. It's been sold as a measure to increase housing supply, but it will have only a marginal impact on prices. The more contentious part was a plan to allow first home buyers to pull up to forty % of their superannuation savings out to put towards the deposit for a house. There are two obvious drawbacks: First, many young people don't have much super to draw on and second, if we imagine two potential first home buyers at an auction, you know, now armed with money they've pulled out of their super, they will bid against one another and bid up the price. And that's why the scheme is