Kiwisaver opens door for buyer
‘‘‘I didn’t even think it would be possible for me to afford a house. It all happened so fast. ’’ Kieran May
Kieran May, 26, has managed to buy a brand-new two-bedroom apartment in the east Auckland suburb of Pt England using mainly just his Kiwisaver, but he won’t be holding a housewarming do.
A body corporate rule restricts residents to having no more than 12 guests over at a time, which means parties are off the table.
But this doesn’t bother May, who is just pleased to be putting his money into a home that belongs to him instead of lining the pockets of a landlord.
Most of his deposit came from his Kiwisaver, which he began contributing to at age 15, during high school, with a part-time job at a supermarket.
As a first-home buyer, May qualified for a mortgage underwritten by Kāinga Ora with only a 10% deposit, and was able to get a $10,000 grant.
However, in the 15 months it took to complete the building, May was able to save a further 5% for his deposit.
May said he initially applied for the home on a whim when he checked Kiwibuild’s online portal and learnt that he was eligible for assistance from the government.
‘‘I didn’t even think it would be possible for me to afford a house. It all happened so fast,’’ May said.
He wasn’t sure what to expect from living in a medium-density apartment development, but assumed it would be better than flatting.
‘‘You can hear people talking when you’re in the corridor but, once you go inside your apartment, it’s quiet.
‘‘It is quite sociable because everyone is in close proximity. You meet new people when you’re putting the rubbish out.’’
May said an apartment also suited his life stage because he did not require a backyard, and building maintenance was taken care of.
Apartments in the development on Hınaki St sold for between $420,000 and $650,000, with an optional car park, which cost $30,000 extra.
Auckland is going to see much more of this type of development.
Last week, the Government announced it would spend $1.4 billion on infrastructure to allow further developments in Māngere, Mt Roskill, Northcote, Oranga and Tāmaki.
In Tāmaki alone, Kāinga Ora was replacing 2500 state houses with 10,500 new apartments and townhouses over the next 20 years.
It is doing this in partnership with the Tāmaki Regneration Company, which is a crown entity owned by Auckland Council and the government.
Kāinga Ora general manager Caroline Mcdowall said there was high demand for housing in Tāmaki suburbs, including Pt England.
‘‘The Kiwibuild homes within these new developments provide homeownership opportunities for individuals and whānau who would otherwise be priced out of the market.’’