‘Incredibly efficient’: Stock picker Wilson backs super-for-housing scheme

Wilson Asset Management chair Geoff Wilson has thrown his support behind the Coalition’s proposed super-for-housing scheme, saying first-home buyers need more options to crack into the market.

Prime Minister Scott Morrison this week unveiled a controversial policy to allow first-home buyers to withdraw up to 40 per cent of their balance, with a cap of $50,000, to go towards funding a house deposit.

The policy has attracted criticism, including from independent economist Saul Eslake, who said it risked pushing up house prices, which have seen record increases in recent years as cheap credit and stimulus have buoyed the market.

Wilson dismissed those concerns, saying he was not bullish on the outlook for housing because rising interest rates would reduce demand and put downward pressure on prices. “The next 12 months are going to be a pretty challenging period for the performance of property and equity markets as well,” he said. “The only impact [super-for-housing] may have is reducing the magnitude of the fall in property prices.”

Wilson said property ownership was a core value for Australians and houses had increasingly become unaffordable for many people, adding first-home buyers should seek advice about the impact on their retirement savings.

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“Australians have been brought up with the dream of owning your own home. I think that’s an important driver for young aspiring Australians. To me, the more options that are available the better,” he said.

AustralianSuper chair Don Russell on Monday said the scheme would leave retirees worse off because residential property returned on average less than half the amount compared to balanced super portfolios.

Wilson said this was a “fair point” but Australians should be able to make up their own choices about their finances. “The logic of super is the ability to fund your retirement,” Wilson said.