What You Need to Know About Using Super as a House Deposit

Thinking about using super to help you purchase your first home? We’ll answer this question and

many more in this blog post. Here, we’ll explain the ins and outs of how accessing your super works

for a house deposit, the pros and cons of using super, and when it is (and isn’t) a good idea.

How Does It Work?

The Australian Government provides a First Home Super Saver Scheme (FHSSS) that allows people

over 18 years old to access their superannuation funds to put towards purchasing their first home.

You can I use my super as a house deposit make voluntary contributions up to $15,000 per financial year and up to $30,000 in total.

These funds are taxed at 15%, which means there’s less tax to pay compared with other investment

options.

The Pros & Cons

Using your super as a house deposit has some clear advantages – reduced taxes being one of them.

Additionally, you’ll be able to save for a house deposit much faster since you don’t need to wait for

the money saved from renting or other sources like overtime or bonuses. However, there are also

some drawbacks – such as taking money out of retirement savings which can affect how much

money you have when you reach retirement age. And finally, it’s important to consider whether or not taking money out of your super will leave you with enough money saved for retirement later on down the track.

When Is It a Good Idea?

Using super as a house deposit is only really recommended if you have enough saved up outside of

your super fund so that it doesn’t take away from what you need in retirement – otherwise it might not be worth it! Additionally, if you’re trying to buy an expensive property then you may find that using super isn’t enough – so it’s important to make sure that whatever type of property you’re buying is within your budget without needing extra funds from your retirement savings!

All in all, using your super as a house deposit can be a good option if done correctly and responsibly.

Make sure that whatever type of property you’re buying is within your budget without needing extra

funds from your retirement savings! Be aware of any potential risks associated with taking money

out of your retirement fund as well as the benefits associated with saving on taxes by utilizing the

FHSSS scheme. Consider all these factors before deciding if accessing your super is right for you

and will help get into the home of your dreams!