You can apply for a KiwiSaver deposit subsidy if you have belonged and contributed to a KiwiSaver scheme for at least three years.
The subsidy is $1000 for each year of contribution to the scheme, so after three years you can get $3000, after four years $4000 and five years $5000 - the maximum you can receive.
After three years as a member of a KiwiSaver scheme you may be able to withdraw your savings, your employer's contributions and any interest.
Government contributions, such as the $1000 kick-start when you join and the generous tax rebate, cannot be withdrawn - they must remain in your KiwisSaver fund to help fund your golden retirement in your rent-free home.
So although the government provides assistance, buyers who do not qualify for the government schemes need to embrace the old-fashioned practice of saving.
The battle to save a house deposit is war. Keep your eye on the prize. It does not matter how much you earn - it is what you can save that matters.
New Zealand has a progressive tax system so any pay rises are increasingly eaten by the IRD fiscal fiend. Do not wait for a pay rise, you need to start saving now. That means today.
Tell everyone you know of your goal to raise a house deposit. Though you may not be financially rich, your wealth of friend and family contacts may open doors. People enjoy those with a clear direction and may offer their help. Let them share in your dream and opportunities may present themselves such as a long-term house sitting, cheap rent in return for maintenance or the holy grail - an unexpected gift or offer to go guarantor on your mortgage.
Don't be afraid to visit houses for sale you can't afford and be open about your inability to buy. Vendor finance is becoming more popular in today's housing market and there are benefactors out there who remember when they were in your shoes and somebody helped them. You may strike a deal.
Your knowledge of the suburb you wish to buy in can save you big bucks. Spend a few dollars and get a sales report from Quotable Value for the suburb you wish to live in. Look at final sale prices and you will see a big difference between what they were marketed for and their sale price.
People who make money in real estate say they often make their money by buying low, not selling high. As a cash buyer you are in a strong position to bag a bargain, so use your knowledge of your chosen suburb to act fast when you see one.
Gain experience and confidence by making low offers on houses and you never know, you may get lucky, cash buyers often do.
Most people write on sales contracts that their purchase is conditional on finance. It is common practice, on the day the contract is due to go unconditional, to say they can go ahead only if the price is reduced further. Consult a lawyer if you are going to use this hardball tactic.
If you are thinking of going flatting, don't. Stay with your parents for as long as you can. Your disposable income will never be as high as when someone else is paying the power bills. If it is good enough for the royal family to live at their folk's place until they get married then it's good enough for you.
When you are married you are treated as one, which means if one of you can't work there is no government assistance, your partner is expected to support you.
If debt is a never ending obstacle to house ownership take action. There are three main ways of moving past a crushing debt burden.
If your debts are less than $40,000 then consider a summary instalment procedure or a no-asset procedure. Beyond $40,000 there is bankruptcy which absolves you of your debts after three years but carries a social stigma. Stay positive and think of your self-imposed poverty to buy your first home as a sport - it's worth it.
