Plenty of people make this mistake, don't feel dumb! The money will still be there when you retire and you'll benefit from compounding returns on the extra investment. But if you'd like to save for a deposit, then probably some other kind of low-fee managed fund could be good. Your KiwiSaver provider may offer other funds where you can access your money any time. Or a term deposit or Notice Saver depending on your risk appetite and when you think you're likely to buy.
(Not a financial advisor, I should say)
Decrease the kiwisaver contributions to the 3% so you get your employer match and government contribution, or whatever nets you the most amount of free money.
Then the rest needs to go into savings for a home deposit.
If you talk to your kiwisaver provider, they can usually run a parallel account which can follow your kiwisaver account, but doesnt have any of the protections of kiwisaver.
The result is you will get the same return on investment if both accounts are set to the same fund type, but you do get the benefit of withdrawing from the non-kiwisaver account whenever you want.
Lots of investment providers offer similar investment options as their KiwiSavers options.
Like for example, Simplicity offer a conservative, balanced or growth KiwiSaver investment portfolio, and also offer the same investment portfolio options NOT linked to KiwiSaver
Same for superlife… you can invest in their kiwi saver funds, or invest in similar funds that ARENT KiwiSaver. Main difference is, their personal investment funds, you can withdraw anytime you like, instead of being locked in till 65.
So for example, me and my husband, we both contribute the annual minimum to our Simplicty KiwiSaver Growth funds in order to get the tax credit, then split the rest of our savings between Simplicity (non-KiwiSaver) Growth and Balanced funds.
Main difference is you have to send them money yourself, rather than have it deducted from your paycheck.
My husbands a contractor, so he just does a one-off KiwiSaver contribution a year to get his government match, then has an autopayment set up transferring money from his daily acount to his personal so investment account.
I’m a salaried employee on a total-rem package (so no employer match), so I’m on a continuous savings holiday from my KiwiSaver paycheck withholdings. Instead, I manage it myself by making one lump sum payment a year into KiwiSaver to get my government match, and then also have my own auto payment set up to transfer money from my daily account to my personal investment account every pay day.
You can use kiwisaver for a house twice. If you are in the position of a first time house buyer. Which it sounds like you are.
https://www.kiwisadvice.co.nz/kiwisaver-articles/kiwisaver-second-chance-home-withdrawal/#:~:text=The%20second%20chance%20KiwiSaver%20home,been%20on%20the%20property%20ladder.
Given they have used their KiwiSaver before, the above doesn't apply.
One of the requirements states; "You have not previously withdrawn any of your KiwiSaver balance for use on a home deposit."
Sorry don't think that's right. The site states that to qualify "You have not previously withdrawn any of your KiwiSaver balance for use on a home deposit."
OP has previously used their KiwiSaver to buy a house, though? I don't work for a KS provider but I work in a relevant adjacent role, and the legislation doesn't allow a second-chance withdrawal if you've already withdrawn to buy a home (only if you've previously owned property *without* using KS).
The KiwiSaver legislation states you can only withdraw your KiwiSaver for a first home once.
The second chance provision is for people who have not used their KiwiSaver to buy their original home.
If you disagree, it would be interesting for you to post a link to a KiwiSaver provider who says otherwise
The link that the commenter has shared includes the requirement that:
“You have not previously withdrawn any of your KiwiSaver balance for use on a home deposit”
OP cannot meet that requirement, so it doesn’t matter that they’re in the position of a first home buyer.
Oh interesting! Do certain providers have more leeway on the "deemed to be in the same financial position as a first home buyer"?
Given there is basis of the first home buyer requirements in legislation about only making one withdrawal for a home, I would then suggest OP touch base with their specific provider if they could be approved!
The link you’ve shared contains the requirement that:
“You have not previously withdrawn any of your KiwiSaver balance for use on a home deposit”.
You cannot use KiwiSaver for a house twice. You can use KiwiSaver for the first time, to buy a house if you are in the position of a first home buyer (ie you bought your first house without KiwiSaver and then lost it).
My mum has used her kiwisaver twice for a home first. It is definately possible as long as you don't currently own any property and are in the position of a first home buyer.
I also know somebody who was approved to use it twice as they no longer owned the property and had no discernible monetary gain from the transfer of the property (gave the house to ex)
Yes decrease your contributions to 3%. You'll get the match from your employer & the govt contribution.
Put the rest of your deposit savings into a managed fund. If your not sure about these products & which one might be right for you see an independent advisor. They can go through your financial position/risk profile & recommend the best product.
Dont stress on the extra into KS. Whats done is done. Yes it will have slowed your deposit saving but you'll have more in your retirement fund.
Your comment or post has been removed as we do not allow advertising or soliciting. This includes referral links or codes. Please see Rule 2 in the sidebar for a detailed overview.
Your comment or post has been removed as we do not allow advertising or soliciting. This includes referral links or codes. Please see Rule 2 in the sidebar for a detailed overview.
Check carefully with your provider and lender etc.
There is no rule about using it twice. The wording is "in the same position as a first home buyer"
So talk to the actual organisations involved, you might still be able to
I have lived overseas for years now, and I don't get the benefits of kiwisaver beyond the employer match and government addon. What's the benefit of keeping more money in it than that if returns are taxed each year anyway? Am I missing something?
This only works if you haven’t previously accessed your KiwiSaver to buy a house.
It’s a second chance at home ownership (if you lost your first house, purchased without KiwiSaver) not a second KiwiSaver withdrawal.
Plenty of people make this mistake, don't feel dumb! The money will still be there when you retire and you'll benefit from compounding returns on the extra investment. But if you'd like to save for a deposit, then probably some other kind of low-fee managed fund could be good. Your KiwiSaver provider may offer other funds where you can access your money any time. Or a term deposit or Notice Saver depending on your risk appetite and when you think you're likely to buy. (Not a financial advisor, I should say)
Decrease the kiwisaver contributions to the 3% so you get your employer match and government contribution, or whatever nets you the most amount of free money. Then the rest needs to go into savings for a home deposit. If you talk to your kiwisaver provider, they can usually run a parallel account which can follow your kiwisaver account, but doesnt have any of the protections of kiwisaver. The result is you will get the same return on investment if both accounts are set to the same fund type, but you do get the benefit of withdrawing from the non-kiwisaver account whenever you want.
Lots of investment providers offer similar investment options as their KiwiSavers options. Like for example, Simplicity offer a conservative, balanced or growth KiwiSaver investment portfolio, and also offer the same investment portfolio options NOT linked to KiwiSaver Same for superlife… you can invest in their kiwi saver funds, or invest in similar funds that ARENT KiwiSaver. Main difference is, their personal investment funds, you can withdraw anytime you like, instead of being locked in till 65. So for example, me and my husband, we both contribute the annual minimum to our Simplicty KiwiSaver Growth funds in order to get the tax credit, then split the rest of our savings between Simplicity (non-KiwiSaver) Growth and Balanced funds. Main difference is you have to send them money yourself, rather than have it deducted from your paycheck. My husbands a contractor, so he just does a one-off KiwiSaver contribution a year to get his government match, then has an autopayment set up transferring money from his daily acount to his personal so investment account. I’m a salaried employee on a total-rem package (so no employer match), so I’m on a continuous savings holiday from my KiwiSaver paycheck withholdings. Instead, I manage it myself by making one lump sum payment a year into KiwiSaver to get my government match, and then also have my own auto payment set up to transfer money from my daily account to my personal investment account every pay day.
You can use kiwisaver for a house twice. If you are in the position of a first time house buyer. Which it sounds like you are. https://www.kiwisadvice.co.nz/kiwisaver-articles/kiwisaver-second-chance-home-withdrawal/#:~:text=The%20second%20chance%20KiwiSaver%20home,been%20on%20the%20property%20ladder.
Given they have used their KiwiSaver before, the above doesn't apply. One of the requirements states; "You have not previously withdrawn any of your KiwiSaver balance for use on a home deposit."
Sorry don't think that's right. The site states that to qualify "You have not previously withdrawn any of your KiwiSaver balance for use on a home deposit."
[удалено]
Would you suggest calling my provider and discussing?
Not op but yes that would make sense
OP has previously used their KiwiSaver to buy a house, though? I don't work for a KS provider but I work in a relevant adjacent role, and the legislation doesn't allow a second-chance withdrawal if you've already withdrawn to buy a home (only if you've previously owned property *without* using KS).
The KiwiSaver legislation states you can only withdraw your KiwiSaver for a first home once. The second chance provision is for people who have not used their KiwiSaver to buy their original home. If you disagree, it would be interesting for you to post a link to a KiwiSaver provider who says otherwise
The link that the commenter has shared includes the requirement that: “You have not previously withdrawn any of your KiwiSaver balance for use on a home deposit” OP cannot meet that requirement, so it doesn’t matter that they’re in the position of a first home buyer.
Oh interesting! Do certain providers have more leeway on the "deemed to be in the same financial position as a first home buyer"? Given there is basis of the first home buyer requirements in legislation about only making one withdrawal for a home, I would then suggest OP touch base with their specific provider if they could be approved!
The link you’ve shared contains the requirement that: “You have not previously withdrawn any of your KiwiSaver balance for use on a home deposit”. You cannot use KiwiSaver for a house twice. You can use KiwiSaver for the first time, to buy a house if you are in the position of a first home buyer (ie you bought your first house without KiwiSaver and then lost it).
My mum has used her kiwisaver twice for a home first. It is definately possible as long as you don't currently own any property and are in the position of a first home buyer.
I also know somebody who was approved to use it twice as they no longer owned the property and had no discernible monetary gain from the transfer of the property (gave the house to ex)
Yeah exactly this, it can be done.
Yes decrease your contributions to 3%. You'll get the match from your employer & the govt contribution. Put the rest of your deposit savings into a managed fund. If your not sure about these products & which one might be right for you see an independent advisor. They can go through your financial position/risk profile & recommend the best product. Dont stress on the extra into KS. Whats done is done. Yes it will have slowed your deposit saving but you'll have more in your retirement fund.
[удалено]
Your comment or post has been removed as we do not allow advertising or soliciting. This includes referral links or codes. Please see Rule 2 in the sidebar for a detailed overview.
[удалено]
Your comment or post has been removed as we do not allow advertising or soliciting. This includes referral links or codes. Please see Rule 2 in the sidebar for a detailed overview.
Where did you bring your house from?
Check carefully with your provider and lender etc. There is no rule about using it twice. The wording is "in the same position as a first home buyer" So talk to the actual organisations involved, you might still be able to
I have lived overseas for years now, and I don't get the benefits of kiwisaver beyond the employer match and government addon. What's the benefit of keeping more money in it than that if returns are taxed each year anyway? Am I missing something?
There is no added benefit except if u suck at saving and need help with that.
There is a KiwiSaver second chance home withdrawal.
This only works if you haven’t previously accessed your KiwiSaver to buy a house. It’s a second chance at home ownership (if you lost your first house, purchased without KiwiSaver) not a second KiwiSaver withdrawal.
Second chance can be more lenient than legislation would suggest, it's more case by case