So, you're saving for a home deposit?

I was talking to a couple yesterday who were renting, and saving for a home deposit. They would need about $300,000 for their home loan. I explained that a $300,000 loan would cost them $500 per week to service. This did not excite them. They thought this was too expensive for them and they were wisely going to keep on saving for their home deposit for the next three years as they had a great house and affordable rent. But this statement really caught their attention...

I said "If I asked you today to save $170 per month for your retirement, you'd say, "No Neil we can't afford it". I am going to invite you to save for your house for the next three years, and the Government are going to pay you (as a couple) $170 per month for your retirement. How do you like that?" How many people know that told me they loved it?

Every New Zealand resident that has never owned a home can take advantage of this plan with KiwiSaver. You need to be resident, joined up for KiwiSaver 3 full years, and willing to wait 3 years. Then your own contributions and those of your employer can be drawn out for your first owner occupied home deposit. That is, your first house, that is owner occupied.

Call Neil Smith to find out more and to make sure your KiwiSaver plan is looked after an by Adviser with the answers. I also do work place presentations for businesses in and around Canterbury, New Zealand. A disclosure statement is available, upon request and free of charge.