Raine & Horne Glenfield | Beach Haven | Milford
R&H
You are viewing an article that is not currently active

Residential real estate the way forward for younger New Zealanders

September 10, 2023

The most recent data from CoreLogic shows that residential real estate in New Zealand stands at a whopping $1.56 trillion, significantly dwarfing the value of shares, which amounts to only $168 billion. It's clear that residential real estate is the undisputed favourite among New Zealanders[i].

On this basis it’s pleasing to see the message that a quality, well-located property is getting through to younger New Zealanders noted Keith Niederer, General Manager NZ, Raine & Horne. According to CoreLogic, first home buyers (FHBs) remain a strong presence in the property market, with a 26% share of purchases in July – still hovering at or near record highs. The easing in the LVR rules from 1st June will have helped some FHBs, but there are many other factors too – such as KiwiSaver for the deposit, First Home Grants/Loans, and the continued desire to get a ‘foot on the ladder’.

"The path to wealth creation is clear: Buy a quality, well-located property for the long-term and it's heartening to witness younger New Zealanders embracing this wisdom,” Keith said. “Better still, younger people have the ability to access their Kiwisaver to get them into a first home.”

Keith added, “If you've never previously owned land or a house either individually or jointly with another person, you might be eligible to withdraw funds from your KiwiSaver account when purchasing your first home.”

KiwiSaver is a voluntary, work-based retirement savings scheme available to all New Zealand citizens and permanent residents living or normally living in New Zealand. You are automatically enrolled into KiwiSaver if you are:

  • eligible to be enrolled
  • starting work with a new employer
  • aged between 18 and 65.

If you are eligible for KiwiSaver but not yet a KiwiSaver member you can enrol by:

  • asking your employer for a KiwiSaver employee information pack and completing a KiwiSaver deduction form
  • choosing a provider and signing directly with them. 

If you're a salary or wage earner your employer may enrol you in KiwiSaver when you start a new job. You can stay enrolled, or you can opt out.

If you’re already employed but not a KiwiSaver member you can join either through your employer or through a KiwiSaver provider. Once you’ve joined, you will not be able to opt out.

If you stay enrolled, you'll contribute either 3%, 4%, 6%, 8% or 10% of your before tax pay.  If you do not choose a contribution rate, your employer will deduct the default rate of 3%. You'll contribute through wage deductions.

Better still, depending on whether you're buying an existing home or a new build - you can get up to $10,000 towards buying your first home using the KiwiSaver HomeStart grant.

If you’re looking to buy a first home, contact your local Raine & Horne estate agent today.