Buying First Home With Help of KiwiSaver
In New Zealand Kiwisaver started as a way of encouraging people to save for their retirement.
Kiwisaver is a work based scheme and works like this.
First you opt in or out so you do not have to join Kiwisaver.
For those who op in your savings starts up with a 1000$ kick start and then each week you contribute a small % of your wage each pay to the balance. At the moment there is a minimum of 3%, but you can contribute 4% or 8% if you prefer.
Your employer also contributes 3% to your Kiwisaver and the Government puts in a tax credit once a year depending on what you have contributed up to a max set cap.
You can pick a provider for your Kiwisaver to be invested with or leave it to go into the hands of a default provider.
You can apply for a first home deposit subsidy of $1000 each year you are in the scheme up to 5 years. So a Max of $5000 towards your first home.
You may also be able to use some of you contributions towards the house deposit.
KiwiSaver Savings and Finance For First Home
I remember when KiwiSaver first started up in New Zealand in July 07.
I was keen for anything that helped me with my savings back then and the $1000 carrot or kick start made my decision easy. To me it was a no brainer, why wouldn't you.
While work mates found the decision challenging I was in. I soon convinced my husband to opt in also which could well be one of the best things that I have ever done. I was a bit of a saver anyway but my husband always found saving difficult.
With the carrot start up, the yearly top up along with my 3 % contribution you could soon see the balance rise and that in itself was encouraging. It would not be so easy to save at a steady pace in such away and I never to this day have missed the money from my pay.
My husband also got a kick out of his KiwiSaver balance as his balance rose quite quickly as his wage was much higher than mine.
In the early days I had no idea that our KiwiSaver would be the help we needed to arrange finance and take out a mortgage and get into our first home.
KiwiSaver not only a great way to help you save but also may help you to get the finance that you need for your first home.
We are glad we made the decision to join Kiwisaver not only because it has helped up to get into our first house but because we still have a healthy balance in out Kiwisavers today even after the purchase of the house and it offers us some security down the track.
If you are starting out in the work force Joining KiwiSaver may be the one decision down that track that makes it possible for you to get a head, have the edge and to get into your first home.
A Chance At Home Finance.
I always wanted my own home but like many today the house prices in New Zealand are too high. It becomes something that occupies your thoughts a lot, a far away dream and as you get older the dream slowly slips away.
Then one day just by chance a house came up for auction in town. My mum was renting a unit next door and I had seen the real estate sign on the house for sometime.
On the day of the auction I decided to go over a just see what it goes for. I had always wanted to go to a house auction. I was amazed that people just stood around and nobody was bidding. One guy put a low bid on way too low and that was it. By now I had looked through the house and had the real estate brochure and I was keen.
That night I joked with my husband and showed him the photos of the house and said why not take a look. With encouragement from family and friends we were soon viewing the house again, our builder friends checked it over and we had an offer in.
The place had been on the market a while and houses had not been selling fast for little while so the prices had slightly dropped . It was a lucky lull. The online mortgage calculator seemed to think we could do it. For the first time in along time I was excited.
KiwiSaver Gave Our House Deposit a Boost
By now I was tidying up our finances. Gathering up a deposit and clearing away outstanding depts.I had an ok deposit together but needed that extra boost and had heard how you could apply through KiwiSaver for a home start and how you could use some of the balance from what you have contributed.
It did not take long to find a site online with all the forms I needed and instruction to get the ball rolling.
It did take a lot of paper work and form filling but then the lawyer takes care of the final clean up and it all fell into place very well.
With out our KiwiSaver we may not have been able to do it. It gave us the chance of a lifetime and I am forever grateful.
With Out KiwiSaver we would still be renting. With out any hope..