First home buyer savings accounts

Hey Guys.
I didn't want to start a new thread on this, but wanted to hear a few opinions on the new 'First home buyer savings accounts'?

I've been hearing them mentioned quite regularly on TV and various sources.

I was just curious to hear what a few of you experienced members think about these products?

 

Don't you have to save for 4 years before you can use the funds?

 

You do indeed Voigstr, and if you need to withdraw it before then, it gets put into your super May be bad for some, but a great incentive for those savers with patience.

See the original thread here for more information.

 

Hi Compleks,

Four financial years, which could be as short as 2 years and 2 days.
Eg, start on the 30th June 2009 and could withdraw as early as 1st July 2011.

Great to start saving if you've got a couple of years to wait until you want to buy...

I was very disappointed that there are only ADIs (basic bank accounts) and no managed funds available to invest in FHSAs Even term deposits in FHSAs??? Very boring and vanilla, reminds me of an RSA (Retirement Savings Account) which pays a nominal amount of interest.

So disappointing

Cheers,

Dan

PS Read the Product Disclosure Statement to assess whether a First Home Saver Account suits your personal needs.

 

Another failed Kevin Rudd initiative...

 

IMHO it's a bit of PR, ... or a way of ensuring a future supply of tenants.

For example, if the property market returns to a modest growth of 5% compounding, not much above inflation, a "cheap" $300k home will grow to $364k in four years while these first home buyers get a maximum $6800 (if they had two lots of $5000 in two separate accounts). The interest would be worth just over 10% of the price increase, so they could maintain their purchasing power if they were looking at a 90% LVR.

If using the 2 years and 2 days idea it might be a bit better (good idea, but do they need to wait another year to get the tax return?).

If they have no other choice but to save, then any free money is a bonus, but it won't help much unless the market stays quiet for four more years. Much better off taking the FHOG now if they can get it.

Dave

 

I found it fairly useless for buying a house as I'll purchase before the four years is up.. however I realised I could use it for another purpose so am putting spare money in to it to boost my super contributions. This is in addition to my salary packaged commitments and the government cocontribution.