Q: We are first-home buyers but have realised we are not auction material. We can't afford a house on auction when the opening bid is more or less over our budget. Our only option is to buy an apartment or townhouse still under construction where prices go up when some are occupied. Can we make a KiwiSaver withdrawal for this?
A: Getting into your first home got a bit easier with some changes to KiwiSaver last month. It's now possible to buy an unbuilt home, opening up the possibility of buying off the plans.
Joe Bishop, head of retail and marketing at Gareth Morgan Investments, explains the fine print: "Before the June 1 changes, KiwiSaver members were only able to access their savings at the point of settlement, which meant it wasn't possible to use the first-home withdrawal as a part of any initial deposit they might need to pay.
"Now members may be able to use the first-home withdrawal option to make deposit payments in certain circumstances, including buying homes off the plans (including apartments) or house-and-land packages, which might suit your particular needs.
"Various restrictions may mean you will not be able to use your first-home withdrawal for deposit payments in all sale and purchase transactions, such as auctions. Your solicitor or conveyancing practitioner can advise you further about this.
