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  • Writer's pictureReal Estate Today - New Zealand

Residential Real Estate the Way Forward For Younger New Zealanders


The most recent data from CoreLogic shows that residential real estate in New Zealand stands at a whopping $1.56 trillion, significantly dwarfing the value of shares, which amounts to only $168 billion. It's clear that residential real estate is the undisputed favourite among New Zealanders.


On this basis it’s pleasing to see the message that a quality, well-located property is getting through to younger New Zealanders noted Keith Niederer, General Manager NZ, Raine & Horne. According to CoreLogic, first home buyers (FHBs) remain a strong presence in the property market, with a 26% share of purchases in July – still hovering at or near record highs.


The easing in the LVR rules from 1st June will have helped some FHBs, but there are many other factors too – such as KiwiSaver for the deposit, First Home Grants/Loans, and the continued desire to get a ‘foot on the ladder’.


"The path to wealth creation is clear: Buy a quality, well-located property for the long-term and it's heartening to witness younger New Zealanders embracing this wisdom,” Keith said. “Better still, younger people have the ability to access their Kiwisaver to get them into a first home.”


Keith added, “If you've never previously owned land or a house either individually or jointly with another person, you might be eligible to withdraw funds from your KiwiSaver account when purchasing your first home.”


KiwiSaver is a voluntary, work-based retirement savings scheme available to all New Zealand citizens and permanent residents living or normally living in New Zealand. You are automatically enrolled into KiwiSaver if you are:

  • eligible to be enrolled

  • starting work with a new employer

  • aged between 18 and 65.

If you are eligible for KiwiSaver but not yet a KiwiSaver member you can enrol by:

  • asking your employer for a KiwiSaver employee information pack and completing a KiwiSaver deduction form

  • choosing a provider and signing directly with them.

If you're a salary or wage earner your employer may enrol you in KiwiSaver when you start a new job. You can stay enrolled, or you can opt out.


If you’re already employed but not a KiwiSaver member you can join either through your employer or through a KiwiSaver provider. Once you’ve joined, you will not be able to opt out.


If you stay enrolled, you'll contribute either 3%, 4%, 6%, 8% or 10% of your before tax pay. If you do not choose a contribution rate, your employer will deduct the default rate of 3%.


You'll contribute through wage deductions.


Better still, depending on whether you're buying an existing home or a new build - you can get up to $10,000 towards buying your first home using the KiwiSaver HomeStart grant.

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