I have just finished my studies and I am now in my first job here in NZ. I have permanent residence and have never owned any property either here or overseas. I am putting 8 per cent into my KiwiSaver and I would like to withdraw all the amount (except $1000 that I have to leave in the account) when I buy my first home. Are there any drawbacks in putting in 8 per cent? And what type of KiwiSaver fund would be most suitable?
Congratulations on planning ahead for your first home purchase. For many people buying a house is the biggest purchase we make in our lives, so it is important to put a lot of thought into it.
Someone who has been a member of KiwiSaver for at least three years, and has never owned property before, can apply to withdraw all but $1000 of their savings to buy their first property. It must be a home they intend to live in, not an investment property.
As your KiwiSaver funds build up, establish a relationship with your bank or a mortgage broker to help you plan your first home purchase. You will also need a solicitor. These people will help you avoid mistakes, such as buying a section before applying to withdraw your KiwiSaver funds (you can't own property when you put in your application - you must apply first).
Once you have saved enough and are ready to buy your first home, your solicitor will help you put together all the documents for your KiwiSaver withdrawal.