As the property market cools off for the winter, it’s a good time for potential first-home buyers to think about ways to make their home-owning dreams come to life.
During recent years he had noticed an increase in the number of clients using their KiwiSaver funds to make their first home purchase.
“KiwiSaver is the most common way that [first home-buyers] are getting into homes.
“I think people are relying on it more [now], they’re using it as the method rather than constantly saving, they know they have got KiwiSaver, and that at some point in the future they are going to have enough to do something with it,” Steve says.
KiwiSaver provides potential home-buyers with discipline when it comes to saving, as it is automatically deducted from their pay packet, and matched to a certain degree by the employer.
While some opt to put in the minimum 3% KiwiSaver contributions, others utilise their KiwiSaver account as their main means of saving for a house deposit, investing more than is required, in order to build their funds up quickly, Steve says.
“It certainly comes downs to individual needs,” he says.
As well as taking advantage of KiwiSaver and the government’s HomeStart grant, Steve says it is important that home buyers cut down on small consumer debts to help them reach their goals.
Short-term loans for things like cars, or household appliances can add-up quickly, as can small transactions like coffees, parking, and meals out, impacting the time it takes to get that deposit together.
Steve is Harcourts Nelson’s in-house mortgage advisor, and can be reached on 0800 219161.