Home unaffordability part 3: Where to next?


With escalating house prices, stagnant wages, and low interest rates what needs to be done to help young Australians get into the property market?’

We think that along with the conventional solutions of greater housing supply and reforms to tenancy laws and tax regulation, there is an opportunity to follow the lead from other countries and create an investment vehicle that allows for tax-free returns and withdrawals specifically for first-home buyers.

‘The First Home Super Saver Scheme (FHSS) is a good first step but it doesn’t go far enough,’ says Clover Co-Founder Harry Chemay.

‘Part of the problem with the FHSS is that it’s using superannuation (a long-term investment tool) for a short to medium term goal. We don’t think that’s an optimal solution. We can look at what other countries have done to build a new tax-free investment vehicle specifically for first-home buyers.’

Watch Harry say what needs to be done to fix the affordability crisis and how a proposed tax-free investment vehicle could work.

Download Clover’s white paper Housing Unaffordability: Part 3. Inside we discuss:

  • A comprehensive overview of the three main drivers behind the crisis and how expensive Australia really is compared to other developed countries
  • What can be done to fix the affordability crisis including Clover’s proposal of a tax-free investment vehicle
  • The detailed specifics around how such a vehicle could be structured

Be sure to catch up on Part 1 and Part 2 of our housing affordability series where we discuss why home ownership among young Australians is on the decline and whether the FHSSS is right for you.


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