Instead of buying someone else's house as a first home, many people are now looking at the option of building, as it brings with it a number of benefits. Not the least of which is the access to the maximum deposit allowance from your Kiwisaver account.
- 1. Double the KiwiSaver grant*
If you are eligible for a KiwiSaver HomeStart grant, when building or purchasing a new home, or for purchasing land to build a new home on, the grant is, in effect doubled to $2000 per year of membership in the scheme, up to a maximum of $10,000 for five years for each member. This means a couple can access up to $20,000.
For full terms and conditions regarding the KiwiSaver HomeStart grant and KiwiSaver First-Home Withdrawal refer to Housing New Zealand’s website.
2. Lower deposit
Restrictions on loan-to-value ratios don’t apply to new builds, which means you need a smaller deposit than if you were buying someone else's home.
3. Master Build guarantee
Your new home comes with a 10 year guarantee with a registered master builder. It covers you for defects in materials and defects in workmanship, and structural defects and further included is rot and fungal decay cover.
4. Low maintenance
New homes are easier to care for. You won’t be spending your leisure hours doing DIY touch-ups. Instead, you can get out and enjoy your free time.