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Local News

Using super for house deposits increases property prices by $75,000

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Using super for house deposits increases property prices by $75,000

 

Super Members Council

Allowing first homeowners to withdraw their super for a house deposit could see property prices rise by nearly $75,000 across Australia’s five largest capital cities, new modelling from the Super Members Council shows.

Pouring retirement savings into housing would inflame an already-inflated property market – pushing up the major capital city median price by an estimated 9%.

The Super Members Council (SMC) modelled a scheme that would allow a first home buyer to take $50,000 from their super for a deposit – as has been proposed.

The rigorous econometric model found the scheme fuelled demand in capital cities and led to price increases that quickly exceeded the $50,000 first homeowners could withdraw from super.

The model showed prices would hike in all capital cities, with the Sydney median ballooning by almost $80,000, in Melbourne by nearly $70,000, Brisbane by $78,000 and in Perth by a whopping $86,000. (See Table 1)

Super Members Council CEO Misha Schubert said allowing withdrawals from super for house deposits could raise prices for everyone – meaning all home buyers would pay higher mortgages for longer, exacerbating the cost-of-living crisis.

“Using retirement savings for house deposits would just unleash a huge price hike,” Ms Schubert said.

“That would mean higher and longer mortgages for Australians – and would quickly make capital cities even less affordable for new home buyers struggling to get into the market.”

“We all desperately want more Australians to own their own home, but this idea won’t achieve that – it would just make that goal even harder for first home buyers by making house prices even more expensive.”

super for house deposits

Impact on capital city prices of allowing a first home buyer to withdraw $50,000 from super

Ms Schubert said a growing list of policy ideas that encourage people to raid their retirement savings come with long-lasting consequences for everyday Australians and the country.

“Breaking the seal on super leaves people poorer in retirement and costs every Australian taxpayer more from higher age pension costs.”

SMC analysis shows a 30-year-old couple who withdrew $35,000 each from their super could retire with about $195,000 less in today’s dollars. People retiring with less super increases age pension costs, which would likely be met by higher taxes – a price every Australian will pay.

Robust international studies confirm schemes that allow people to access retirement savings for house deposits do not lift rates of home ownership.

A Mercer study of its Global Pension Index found that countries that allow early access to retirement savings for housing did not have higher rates of home ownership than Australia.

The study also concluded the common feature of the best global retirement systems were that they ‘preserved’ savings until retirement.

An academic review of the New Zealand super scheme, Kiwisaver, that allows withdrawals for housing, found balances were far lower partly due to the country’s first home deposit withdrawal scheme. New Zealand also has a lower rate of home ownership than Australia.

A chorus of credible economists, Retirement Income Review author Mike Callaghan, the RBA, APRA, Coalition PM Malcolm Turnbull and OECD General Secretary Mathias Cormann have all cautioned using super for housing deposits could inflate property prices.

“The Super Members Council works with Parliamentarians and policy makers across the full breadth of the Parliament to ensure super policy is stable, effective and equitable,” Ms Schubert said.

“We produce rigorous research and analysis to help inform policy development that protects and promotes the interests of the 10 million everyday Australians we represent.”

 

For more real estate news, click here.

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Local Elections

Kylie Maunder – Richmond Valley meet your candidates

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Kylie Maunder Richmond Valley meet your candidates

By Tim Howard

The Northern Rivers Times has asked all of the candidates for the September 14 local government elections to introduce themselves to voters identify the issues they want to address and policies they would pursue if elected.

A number of candidates did not meet the deadline for publication but are welcome to send in copy for coming editions of The Northern Rivers Times before the election date.

Kylie Maunder

Yamandhu marang, my name is Kylie Maunder and I’m a proud Wiradjuri woman, blessed to be living breathing and learning on Bundjalung country for most of my life.

I grew up in a small village outside of Casino and have experienced first-hand the lack of supports and infrastructure for regional communities.

My background has been in leadership in community services, disability, family support, aboriginal engagement, reconciliation and aboriginal leadership.

My goals and passions are educating and inspiring the broader community through culture, closing the gap on education, health, and support healing through connection.

 

For more 2024 Local Elections News, click here.

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Gardening

Get Your Garden Ready for Warmer Weather

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Get Your Garden Ready for Warmer Weather

 

By Liam Jennings

As the days grow longer and the temperatures rise, gardeners everywhere feel the urge to head outside and prepare their gardens for the warmer months. Spring is the perfect time to give your outdoor space a fresh start, whether you’re nurturing a vegetable patch, tending to a flower garden, or simply beautifying your yard. Preparing your garden now ensures that it will thrive in the coming season and helps set the stage for a bountiful summer.

Here are some essential tips for getting your garden ready for the warmer weather.

Clean Up and Clear Out

Before you can plant new seeds or tend to your perennials, you need to clear away the remnants of winter. Start by removing any dead plants, weeds, and debris that have accumulated over the colder months. Dead leaves, fallen branches, and spent annuals can harbor pests and diseases, so it’s important to clear them out to create a clean, healthy environment for new growth.

Once the garden beds are clear, take a moment to prune your perennials and shrubs. Deadheading spent blooms and cutting back dead stems encourages healthier growth and prevents the plant from wasting energy. Pruning is especially important for rose bushes, hydrangeas, and other flowering plants that benefit from a good trim before the growing season begins.

Revitalise the Soil

After a season of dormancy, your garden’s soil needs attention. The cold, wet conditions of winter can leave soil compacted and depleted of nutrients. Start by loosening the soil in your garden beds with a fork or spade, which helps improve aeration and drainage. You might also want to add organic matter like compost, leaf mould, or well-rotted manure to improve soil structure and replenish nutrients.

Testing your soil’s pH can also be a good idea, as certain plants thrive in more acidic or alkaline conditions. If your soil is too acidic, adding lime can help balance it, while sulphur can lower the pH if it’s too alkaline.

Fertilise Early for a Strong Start

Fertilising in spring gives your plants the nutrients they need to grow vigorously throughout the warmer months. Different plants have varying nutritional needs, so consider using a slow-release fertiliser for general garden use, or choose a specific fertiliser designed for the types of plants you’re growing.

Organic fertilisers like compost or seaweed extracts are a great way to feed your plants while also improving the soil’s health. For flower gardens, you can add a balanced fertiliser that provides nitrogen, phosphorus, and potassium to encourage lush foliage and blooms. For vegetable gardens, opt for a fertiliser rich in nitrogen, which promotes leaf and stem growth, while phosphorus helps with root and fruit development.

Planting and Sowing

Spring is the ideal time to plant, whether you’re starting from seeds or transplanting seedlings. Hardy annuals and cool-weather vegetables like peas, spinach, and lettuce can be planted early in the season, while more tender plants like tomatoes and peppers should wait until the soil warms up.

For flower gardens, now is the perfect time to plant summer bulbs such as dahlias, gladiolus, and lilies. These plants will produce stunning blooms as the season progresses, adding vibrant colour and texture to your garden. Be mindful of the growing conditions of each plant and ensure that they are placed in the right spot—sun-loving plants should go in sunny locations, while shade-tolerant varieties should be placed in more sheltered areas.

If you’ve been dreaming of a herb garden, spring is the perfect time to start planting your favourite herbs. Parsley, basil, rosemary, and thyme thrive in warm weather and will be ready to harvest in the summer months.

Mulching Matters

Mulching is one of the best ways to protect your garden from the heat of the summer while helping your plants thrive. Adding a layer of organic mulch around your plants helps retain moisture, suppress weeds, and regulate soil temperature.

Choose a mulch that suits your garden’s needs—compost, wood chips, straw, or bark mulch are all excellent choices. Apply a 5-7cm layer of mulch around your plants, being careful not to pile it too close to the stems or trunks, as this can cause rot.

Mulching also helps improve the soil over time as it breaks down, adding valuable organic matter back into your garden beds.

Irrigation Preparation

Warmer weather means your plants will need more water to stay hydrated. Spring is the perfect time to check your irrigation system or hose setup to ensure it’s working efficiently. Make sure your hoses are free from leaks and consider setting up a drip irrigation system to deliver water directly to the roots of your plants, where it’s needed most.

Watering early in the morning is best during warmer months as it allows the plants to absorb moisture before the heat of the day evaporates it. Aim for deep, infrequent watering to encourage deeper root growth.

Pest and Disease Control

With warmer weather comes an increase in pests and diseases. Keep an eye out for common garden pests like aphids, slugs, and snails, which can cause damage to tender new shoots. Consider using organic pest control methods, such as introducing beneficial insects like ladybugs, using neem oil, or setting up physical barriers like copper tape to deter slugs.

Inspect your plants regularly for signs of disease such as powdery mildew, rust, or leaf spot. Early detection is key to preventing the spread of disease, and removing affected foliage can help keep the problem under control.

Plan for Growth

As your garden springs to life, don’t forget to plan for future growth. Staking tall plants early will prevent them from flopping over as they grow, and ensuring enough space between plants allows for proper air circulation, which can help prevent disease.

Get out into the garden!

By giving your garden the care it needs now, you’ll set yourself up for a thriving, beautiful space all summer long. Whether you’re growing food, flowers, or simply enhancing your landscape, a little preparation in spring can make all the difference as the weather warms.

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Gardening

Shredded Rubber Mulch in Your Garden: Is it any good?

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Shredded Rubber Mulch in Your Garden: Is it any good?

By Liam Jennings

Gardeners have experimented with various mulching materials over the years. Each offers its own set of benefits and drawbacks, with most eventually breaking down, fading, or blending into the soil. However, when rubber mulch—made from recycled tires—entered the market, it promised a long-lasting, low-maintenance solution that wouldn’t require reapplication over time. But like any product, shredded rubber mulch comes with both pros and cons.

What is Shredded Rubber Mulch?

Shredded rubber mulch is primarily made from recycled tires and comes in several forms, including crumbs, shreds, nuggets, and sheets. It’s widely used in areas like playgrounds, roadways, and running tracks due to its durability. When compared to traditional mulches, rubber mulch tends to be more expensive upfront but boasts a significantly longer lifespan, potentially saving money in the long run.

The Benefits of Rubber Mulch

  1. Long-lasting Durability: One of the main advantages of rubber mulch is its longevity. Unlike organic materials, it does not decompose or break down over time, meaning it essentially remains in your garden indefinitely. Provided it’s not affected by extreme conditions like flooding or heavy erosion, rubber mulch will stay in place with little need for maintenance.
  1. Moisture Conservation: Rubber mulch acts as a barrier that helps conserve soil moisture. Rain and snow can still penetrate the mulch and reach the soil, but the rubber prevents it from evaporating too quickly. This helps maintain moisture in the soil for longer, especially in hot or dry climates.
  1. Colour Retention: Rubber mulch is available in a variety of colours, which tend to hold up well over time. Unlike organic mulches that may fade after a season or two due to sun and rain exposure, rubber mulch maintains its colour for years, providing a long-lasting, uniform appearance.
  1. Environmentally Friendly Recycling: Since rubber mulch is made from recycled tires, it helps repurpose waste that would otherwise end up in landfills or oceans. It provides a practical and sustainable way to create a useful product out of discarded materials.
  1. Effective Weed Barrier: When applied thickly, rubber mulch can be an excellent barrier against weeds. Due to its lack of pores and ability to retain little moisture, weeds struggle to take root. Seeds may start to germinate, but they typically die off quickly due to the absence of moisture.
  1. Easy to Transport: Unlike heavier options like rocks or pebbles, rubber mulch is dense but relatively lightweight, making it easier to transport in large quantities.

The Downsides of Rubber Mulch

  1. No Benefit to Soil Health: One of the biggest drawbacks of rubber mulch is that it does not enhance soil health. While organic mulches decompose over time, adding valuable nutrients and organic matter to the soil, rubber mulch is completely inert. It doesn’t break down, meaning your soil doesn’t get the same nutrient boost that organic mulches provide.
  1. Heat Retention: Rubber mulch is known to absorb and retain heat, which can become problematic in certain climates. On hot, sunny days, it can trap heat, which may damage delicate plants and even burn the paws of animals walking on it. In extreme conditions, rubber mulch has even been known to combust, releasing harmful toxins into the atmosphere and the surrounding soil.
  1. Difficult to Remove: Once you’ve decided to use rubber mulch, it can be difficult to get rid of if you ever change your mind. Unlike organic mulch that breaks down and becomes part of the soil, rubber mulch remains intact. Removing every last piece can be a tedious task, and disposing of it in bulk requires finding a proper recycling or disposal facility.

The Verdict

Rubber mulch has its place in certain landscapes, particularly in areas where little to no planting occurs, such as pathways, playgrounds, or non-vegetated spaces. Its durability, weed suppression, and moisture retention make it appealing for these uses. However, for traditional garden beds or areas where soil health and plant growth are priorities, rubber mulch may not be the best option.

While it may seem convenient, the long-term consequences of using rubber mulch in a garden should not be overlooked. Its inability to improve soil quality, potential to overheat, and difficulty in removal are significant drawbacks that need careful consideration. Before deciding to incorporate shredded rubber mulch into your garden, weigh the pros and cons thoroughly to ensure it’s the right choice for your space.

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