If you’re looking at purchasing your first home, using your KiwiSaver fund is a fantastic way to get a head start toward your deposit. I thought it may be worthwhile just covering some of the rules for individuals who are struggling to keep up with some of the changes as they happen. As I write this in 2018, the current rules are as follows:
- Can only be withdrawn if you’ve been a member of KiwiSaver for more than 3 years
- Must be purchasing an owner occupied property – not an investment property
- You’re able to withdraw everything in there, except that you must leave $1,000 in there. This includes your contributions, government contributions, employer contributions, and investment gains.
I’m a strong advocate of being a KiwiSaver member because of the returns you get – the Government matches you at 50 cents on the dollar up to $1,042.86. This means that every year if you contribute at least this amount, you’ll get $521.43. I don’t know any other investment that guarantees a 50% return.
In addition to this your employer contributes to your KiwiSaver too – up to 3% of your earnings in most cases – is my understanding.
Based on the above you’re getting $1.50 for every dollar contribution you make (assuming you’re making a 3% contribution) up to $1,042.86, and $1 for $1 every dollar thereafter!
KiwiSaver HomeStart Grant:
There are two types:
1. For existing property purchases – the grant is between $3,000 and $5,000 based on $1,000 per year of KiwiSaver membership.
2. For new property purchases, the above is doubled (between $6,000 and $10,000) based on $2,000 per year of KiwiSaver membership.
The above figures are per KiwiSaver contributor, so if you’re in a couple and purchasing a home together, these figures are doubled again. The maximum contribution however, toward a single dwelling – regardless of the number of KiwiSaver contributors is $10,000 per existing home and $20,000 per new home, so if you are 3 or more people purchasing a home, you will only receive the benefits as if you were 2 (assuming all had been in for 5 years).
The rules to getting access to this are as follows – you must;
- Have been contributing the required minimum amount to KiwiSaver for at least 3 years
- Be 18 or over
- Be purchasing/building your first Home
- Have a household income (before tax) of less than $85,000 per year (for one person), or less than $130,000 per year (for two or more people)
- Have a deposit that is 10% or more of the purchase price, including the addition of the grant
- Be planning to live in the house for at least 6 months from the settlement/completion of the property.
Another key thing to check is if the property is eligible - mainly this relates to house price caps as follows:
- Auckland - Existing Properties $600,000 and New Properties $650,000
- Hamilton City, Tauranga City, Western Bay of Plenty District, Kapiti Coast District, Porirua City, Upper Hutt City, Hutt City, Wellington City, Nelson City, Tasman District, Waimakariri District, Christchurch City, Selwyn District, Queenstown Lakes District - Existing Properties $500,000 and New Properties $550,000
- Rest of New Zealand - Existing Properties $400,000 and New Properties $450,000
If you’ve got any other questions and are still uncertain about accessing Kiwisaver – feel free to get in touch.
abc says ...
CGC Jhanjeri is one of the best colleges in the North India and we are providing the best quality of education in various courses.
engineering college in mohali
best mechanical engineering college in punjab
best placement college in chandigarh
private management college in punjab
best agriculture college in chandigarh
kapoor priyanka says ...
Apple products are revered for its quality, precision and great design. SRSG started its operations as Apple technology partners in the year 1997.
Apple reseller in Kolkata
System Integration service providers
Apple authorized service center in delhi
ipad reseller in bhubaneswar
ipad mini 2 reseller in Ahmedabad
Vig says ...
Mark says ...
Matthew Lily says ...
That is a good write-up When i viewed on account of write about the item. Really it is what exactly I need to to discover trust with foreseeable future you might go on intended for giving a really fantastic write-up. Capital Gains
Steven Angelina says ...
the nation's certainly fabulous web log. the nation's realy informative together with a a great decent project. i want it. https://happynewyear-2019x.com/
sad says ...
I enjoy each one of the posts, We appreciated, I would enjoy a lot more info with this particular, due to the fact it's very enjoyable., Be thankful meant for providing. how to
RT says ...
Quite simply this page would most likely irrefutably in some cases come to be widely recognized relating various blog customers, to make sure you the country's thorough articles or blog posts or perhaps it is thoughts and opinions. the list inc
BI says ...
Photographs found on your web site regardless of whether generating fascination speedily a bit of volume submits. Pleasing way of long lasting potential, I shall be book-marking back then turn into your current floor conclude comes up " way up ". legamenti damore