Can super help you get on the property ladder?

I'm building my wealth | | 2 min read

Small apartment


The real estate industry loves drama. You don’t have to go far to read about surging property prices, desperate buyers, and huge windfalls.

As the media is quick to point out, the average house price in Sydney and Melbourne is around $1 million dollars and climbing. That places it beyond the reach of your average Australian family.

But that narrative assumes you’re looking for standalone home in the suburbs with three bedrooms, a yard, and a place to park the car. That might not be the case.

In fact, there’s a significant shift towards more affordable, smaller footprint living in recent years. It offers inner city home ownership for prices closer to $300-400k. Here’s how to get on-board, and how your super can help you save for a deposit. 

Tiny homes and affordable living 

Recent years have seen a movement towards more sustainable, practical living. 

For some people that's meant taking a second look at older, more modest apartments from the 60s and 70s, and how these can be re-imagined for the modern world. 

These transformations have been highlighted by several YouTube channels and dedicated websites.

In the process, they've helped grow a community of likeminded people. All of them celebrating the many ways you can convert small, run-down apartments into affordable homes (at a reasonable price).

These apartments can provide a stepping-stone into the housing market. They might also be good investment. 

According to CoreLogic, Melbourne saw average apartment prices rise 7.3% last financial year. That’s despite the city being in lockdown for much of the year and a ban on overseas travel and students. 

Meanwhile, in Sydney, overall dwelling prices have risen by 20.9% this past year.

Planning for the future

Superannuation, property, and investments are keys to long-term wealth. A modest apartment now means you’re not only saving on rent, you’re also creating a pathway to something bigger down the track, as your lifestyle and needs change. 

The good news is your super can also help. 

The First Home Super Saver Scheme (FHSSS) is designed to help first homebuyers save towards a deposit, and works in conjunction with your existing super fund. It allows you to make additional contributions to your super in order to take advantage of the favourable tax treatment superannuation receives. This money can then be used as part of your deposit.

Note that there are many rules associated with the FHSS including the type of contributions you can make, how much you can contribute, and how much you can withdraw for the deposit. 

So, if you are looking to enter the market, and prices have got you down, it may be time to think about what suits you and your lifestyle. 

In the meantime, a financial planner or accountant can provide advice on how a modest mortgage can fit into your broader finances and also the best ways to save for a deposit, including how your super can help.

Issued by Togethr Trustees Pty Ltd ABN 64 006 964 049, AFSL 246383 ("Togethr"), the trustee of the Equipsuper Superannuation Fund ABN 33 813 823 017 ("the Fund"). The information contained herein is general information only and does not take into account your personal financial situation or needs. You should consider whether this information is appropriate to your personal circumstances before acting on it and, if necessary, you should also seek professional financial advice tailored to your personal circumstances. Where tax information is included, you should consider obtaining personal taxation advice. Before making a decision to invest in the Equipsuper Superannuation Fund, you should read the appropriate Product Disclosure Statement (PDS) and Target Market Determination for the product which are available at  Financial advice services may be provided to members by the trustee’s related entity Togethr Financial Planning Pty Ltd (ABN 84 124 491 078; AFSL 455010). *Past performance is not an indication of future performance.

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