More locals use home start grant
More Taupo residents are able to own their own home thanks to the KiwiSaver HomeStart scheme, MP Louise Upston says.
The Government scheme offers grants to first-home buyers to help with their deposit on a home. It also enables first home buyers to access their KiwiSaver funds, which are normally kept in savings until retirement.
Upston said the number of grants given out had increased significantly since the scheme started two years ago.
‘‘In the past year, the scheme has helped 155 people in Taupo, with $683,000 in grants,’’ she said,
‘‘This is an increase from the 131 first-home buyers that benefited in the first year of the scheme and the $581,000 in grants.’’
The fund could help young people get on the property ladder, Upston said.
‘‘The grants can help our young people overcome the most difficult hurdle of pulling together the funds for a deposit, and is forecast to help 90,000 first-home buyers across New Zealand by 2020,’’ she said.
‘‘Once you can get on the ladder, it helps.’’
Harcourts real estate agent MaryLouise Johns said the grant gave first home buyers a chance to get into a very competitive market.
‘‘The cost of day-to-day living, added with the increase of rental prices, make it a struggle for people to be in a position to save the deposit they require,’’ she said.
‘‘The HomeStart Grant actually makes putting together a deposit a possibility for these first home buyers.’’
There are three parts to the KiwiSaver HomeStart grant.
Firstly, a HomeStart grant can provide someone buying an existing home with $1000 towards a deposit for each year they’ve been contributing to their KiwiSaver fund. Conditions apply and the maximum grant available is $5000.
Secondly, for eligible first-home buyers building a brand new home, the KiwiSaver HomeStart grant also provides buyers with a grant of up to $10,000 for individuals and up to $20,000, where there are two or more eligible buyers.
Thirdly, eligible first-home buyers can withdrawn their KiwiSaver savings and use them to help with the deposit. Conditions apply.
* For more information on the grants available visit hnzc.co.nz