First home buyers in New Zealand recently gained a boost from the government itself through the KiwiSaver scheme. Buyers who are looking for a first home will be allowed to search for a property within a more realistic price range through KiwiSaver. The scheme’s goal is to help first home buyers to put together their resources for a deposit with a grant of $10,000 for an existing home and $20,000 for a new home. For a couple who wants to use KiwiSaver, income caps will increase from $100,000 to $120,000 while for singles the income caps will increase to $85,000 from the previous $80,000.
The adjustments in income and home price caps through KiwiSaver will help the middle income earners in realizing their dream of owning a modest home. The same adjustments will apply to Welcome Home loan schemes that allow first home buyers to purchase a home with 10% deposit with exemptions from loan-to-value ratio limits from the Reserve Bank. Couples with a average income of $60,000 will be able to withdraw $45,000 from their KiwiSaver accounts and obtain a HomeStart grant of $20,000 to buy a new build after 5 years in KiwiSaver. With a $65,000 deposit, the couple will be eligible for the Welcome Home Loan that requires a 10% deposit and obtain a new home with a value of up to $650,000.
Because of the recent developments, first home buyers are favored over investors in the housing market. The two government programs will ensure that first home buyers will be given cash grants for their deposits. On the other hand, the loan-to-value ratio changes of the Reserve Bank will make things more difficult for low equity housing investors. The crack down on speculators will mean more affordable homes for first home buyers.
Through first homeowners centre, first home buyers will gain a different experience with their first home. A huge range of home designs are available through the centre so that clients can make a choice for the home of their dreams. The centre is also very transparent with information so that the first home buyer will gain the best value from the money invested.