New KiwiSaver rules make it easier for members to buy their first home
The changes to the KiwiSaver rules effective 1 April 2014 allow those who have been a member for three or more years to withdraw all but the $1,000 kick start to buy a first home - as long as it's not an investment property.
So the Government is taking tax payers money and giving it to people to buy a house. Some will argue this doesn't make economic sense and will further stimulate demand so pushing house prices yet higher. But it probably makes political sense and the politicians make the rules.
Whatever the for or against arguments it makes KiwiSaver a good way to save for a first home. If you know people saving for a first home you might like to encourage them to look into it.
It is almost certain that a default scheme will NOT be the right vehicle. They should probably be in a fund where the chances of their fund being down in value when they want to buy are minimised, to get maximum benefit. They should do their homework and seek advise.
- Last updated on .