In many ways, KiwiSaver has made it a lot easier to buy or build your first home. If you’ve been a contributing KiwiSaver member for 3 years or more, you may be able to withdraw your savings and use this towards your first home.
But should you buy or build?
There are many advantages to building your first home over purchasing an existing home. When building your own home, you have absolute control over the design and have the ability to customise it to suit your budget and needs. It also means you won’t be dealing with earthquake damages and unexpected maintenance and repair costs later down the track.
To top that off, there’s now a further incentive to build your first home. With KiwiSaver’s Homestart Grant, you are eligible for up to $10,000 to help your build. The grant is calculated at $2000 per year with the minimum contribution period being 3 years.
In comparison, buying a new home with KiwiSaver Homestart only allows a maximum grant of $5,000.
So how do you know if you’re eligible?
To qualify for the grant you will need to be 18 years or over and have contributed the required minimum amount to KiwiSaver for at least 3 years. It also needs to be your first home and your household income must be less than $85,000 per year (or less than $130,000 per year for couples). You must be able to pay a deposit of 10% or more (not inclusive of grant) and be planning to live in the house for 6 months minimum upon build completion.
For full eligibility requirements, visit the KiwiSaver website.
It’s also important to note that the Homestart Grant cannot be used to build a home only and will need to be put towards the purchasing of land. The easiest way to do this is through house and land packages. Orange Homes offers a number of KiwiSaver eligible house plans that are affordable and contemporary. Our prices are fixed and we build with a “no surprises” policy.
Book a free consultation today and talk to us about how you can get started. Our consultants are happy to guide you through the process and help you plan your dream home.