Buying property with friends and family has recently become a little easier.
From 1 October, New Zealand first-home buyers and their property partners (provided they have been in a KiwiSaver scheme for three years or more) can each apply for a FirstHome Grant of up to $10,000. In other words, the total grant amount of $10,000 for three or more buyers has been removed, and buyers can now combine their grants if they’d like to buy a home together.
Plus, they now only need a 5 per cent deposit to qualify for the grant, rather than a 10 per cent deposit.
These changes are part of the KiwiBuild reset, but they actually apply to all first-home buyers, making co-ownership easier. As this story from Stuff.co.nz shows, for example, co-owning can be a valid option for single and young buyers who are struggling to save for a deposit. Of course, there are a few extra things to know and do, like having everything detailed in a contract, establishing a clear line of communication, and finding the right mortgage structure for all co-owners’ circumstances. But when done properly, it can be a great way to get a foot in the door.
If you know of anyone who needs to get their mortgage sorted, either as a sole owner or in partnership with friends or family members, our Mortgage Link advisers are here to help Kiwis find a fit-for-purpose solution.
To get in touch with the team at Mortgage Link, please contact:
021 835 506
Disclaimer: In preparation of this publication all care has been taken, however no warranty is provided as to the accuracy of the information and, as such, no responsibility is taken by Pivotal Financial for any errors or omissions.
This publication does not constitute personalised financial advice, may not be relevant to individual circumstances and should not be seen to constitute a recommendation of any description. Before taking any action in relation to matters dealt with in this publication please seek Professional Financial Advice.
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