TIPSLIFEHACKS

Dreaming of owning your own home in New Zealand? Saving for a deposit can feel like a monumental task, but it's absolutely achievable with the right strategy. Nadine Higgins, host of NZME's The Prosperity Project podcast and a financial advisor at enableMe, shares her expert advice on boosting your savings and navigating the complexities of the New Zealand property market.

As a former financial journalist and broadcaster, Nadine understands the challenges faced by aspiring first-home buyers. In this article, she breaks down practical steps you can take to accelerate your savings and increase your chances of getting on the property ladder. Forget feeling overwhelmed – let's get you closer to your dream home!

1. Know Your Numbers & Set a Realistic Goal

Before you start saving, you need to understand where you stand financially. Create a detailed budget – track your income and expenses meticulously. There are plenty of free budgeting apps and templates available to help. Be honest with yourself about where your money is going. Once you know your spending habits, you can identify areas where you can cut back and redirect those funds towards your deposit.

Next, determine how much deposit you’ll actually need. Factor in not just the 20% (or higher) deposit, but also associated costs like legal fees, valuation fees, and potentially, Kiwisaver withdrawal fees. A realistic goal, broken down into smaller, manageable milestones, is far more motivating than an abstract, overwhelming target.

2. Leverage Kiwisaver to Your Advantage

Kiwisaver is a powerful tool for first-home buyers. Don't just see it as a retirement savings plan - actively use it to build your deposit. The First Home Withdrawal scheme allows you to withdraw your Kiwisaver contributions (and any employer contributions) after a certain period, plus a bonus from the government. Make sure you meet the eligibility criteria and understand the implications before making a withdrawal.

Consider increasing your Kiwisaver contributions if possible, even a small increase can make a difference over time. Talk to your financial advisor about strategies to maximize your Kiwisaver benefits.

3. Explore Other Savings Options & Income Boosters

Kiwisaver isn't the only option. Consider opening a high-interest savings account specifically for your deposit. Even a small amount of interest earned can add up. Look for accounts with competitive rates and minimal fees.

Think creatively about boosting your income. Could you take on a side hustle, freelance, or sell unwanted items? Every extra dollar counts towards your savings goal. Negotiate a raise at work – it’s often easier than you think!

4. Understand Government Assistance & Schemes

New Zealand offers several schemes to help first-home buyers. The First Home Grant provides financial assistance towards your deposit. Eligibility criteria apply, so research thoroughly. The Large Residential Family Home Grant is available for families purchasing larger homes in certain areas.

Stay informed about any changes to these schemes, as rules and eligibility requirements can evolve.

5. Seek Professional Advice

Navigating the property market and financial planning can be complex. Don't hesitate to seek advice from a qualified financial advisor. They can help you develop a personalized savings plan, assess your borrowing capacity, and guide you through the home-buying process. At enableMe, we're committed to helping Kiwis achieve their financial goals, including homeownership.

Getting on the property ladder in New Zealand takes effort and planning, but it’s within reach. By implementing these strategies and seeking expert advice, you can accelerate your savings and make your dream of owning a home a reality.