Helen Twose: It's all about getting a start

First-home buyers can access grants and withdrawals, but having owned land before can disqualify you. Photo / Mark Mitchell

Q: I once owned one-fifth of a house in Auckland. Now I own a bare section with no house on it, in the Auckland area. Am I eligible for the $5000 first-home grant when I build a small cottage on my land?There are provisions for those who have owned a property but no longer do to withdraw their KiwiSaver funds to buy a home.

A: The application process is managed by Housing New Zealand, which assesses applications on behalf of KiwiSaver providers to understand if the applicant is in the same financial position as a first-home buyer.

Housing New Zealand will look at what funds you have access to, including "realisable assets" - shares, term deposits, classic cars and motorbikes and any other investments or items of high value that could be sold easily.

The process is aimed at weeding out those who have significant financial reserves to draw on and aren't in the same category as those stepping on to the property ladder for the first time. As of July 1, the requirement to earn less than $80,000, or $120,000 for a couple, will be dropped. When he announced the changes, Housing Minister Nick Smith said it would help mid-life, middle-income New Zealanders who have been through a separation or business failure and are struggling to get back into home ownership.

Housing New Zealand also runs the HomeStart grant scheme. HomeStart grants can be worth up to $5000 for individuals buying an existing home, or $10,000 for buying a new property.

That doubles if a couple is buying.

The eligibility criteria is tougher than for the second-chance withdrawal and includes a requirement to be consistently contributing to KiwiSaver.

More about the HomeStart grant is on the Housing New Zealand website: tinyurl.com/zbytwdr.

Unfortunately, where you hit a snag is not the fact you've owned a house in the past, but the block of land you own. I ran your situation past Donna Nicolof, BNZ's head of wealth and private bank, who confirmed that owning "estate in land" - in your case, a section - means you cannot access your KiwiSaver funds to build a house.

On an entirely different matter, the "KiwiSaver year" ends on June 30.

It's a significant date for anyone wanting to ensure they receive their full $521 member tax credit from the Government.

The member tax credit is a cash bonus of 50c for every dollar you put into your account, up to $1042.

Anyone earning over $35,000 and contributing 3 per cent of their salary to KiwiSaver will automatically hit the maximum tax credit at the end of June.

It is possible to make a top-up directly to your provider if you're either self-employed or earning under $35,000 in order to get the full member tax credit.