Purchasing your first home with KiwiSaver 01 Feb 2016
So you have been saving hard with KiwiSaver and are now ready to purchase your first home? Great! Home ownership is a massive investment and one that needs great consideration before jumping in feet first. Do you home work! Below are a few things to consider before placing an offer on your first home.
Your first home is very unlikely to be your dream home. You need to keep your first home affordable. You have likely until now only been paying rent and contents insurance, when you own a property there are more expenses than just the mortgage. Think about the rates, house insurance, life insurance, income protection. All these things need to be considered. Sometimes buying the worst house on the best street is the way to go, especially if you are good at DIY.
Think about the long term plan. Do you have a partner/spouse? Do you have children? What are the must haves or what could you live without if need be. For a first home, it’s unlikely to tick every single box whilst still being in a price bracket that you can afford. Use your first home a stepping stone up the property ladder. See it as a 3-5 year investment, pay off as much or the mortgage as you can, improve the property, sell to make a profit and then you will have more bucks in your back pocket to move up the ladder.
Having KiwiSaver will help massively with the deposit. If you are yet to join or an unsure whether you have it set up to best meet your goals, talk to us at KiwiSelect and we can help.