Co-host of the top-rating Bree & Clint afternoon ZM drive show, Clint Roberts had to harness a different kind of drive to score his first home.
KiwiSaver was the key that unlocked the door to the property market – and our first home.
When Lucy and I decided we wanted to buy a house together, we used our KiwiSaver accounts to give ourselves the best chance possible to get on the property ladder. At the time, we were renting with friends in Mt Eden. It was a great time but, with our relationship getting serious, we wanted to get into our own home. Plus get some cats.
Getting the deposit together was always going to be a mission, especially in the super-hot Auckland market. We budgeted, saved, and were super disciplined, but KiwiSaver made all the difference.
I had been a KiwiSaver member for eight years and, over that time, my weekly contributions, employer contributions, government contributions, and investment returns gave me an amount much greater than I would have been able to save on my own.
Maximising our KiwiSaver accounts was the smartest thing we did. For anyone on their first home journey, KiwiSaver can be a great option for your savings. The earlier you start, the more you could have if you save hard. We are both still KiwiSaver members now and saving towards our retirement.
Maximise your contributions to get the most from your employer and the government on top of what you put in – and look at KiwiSaver as an investment for the long term.
With our KiwiSaver balances, plus every other dollar we could scrimp, save and scrounge, we were able to buy a three-bedroom 1940s home in West Auckland at auction. It was a do-up with great bones and tonnes of character; for us it was perfect.
Getting through the auction was terrifying and exhilarating – and all of a sudden we had a home (and mortgage) to call our own.
Since we moved in, we've made it our family home, had our two beautiful girls (and two beautiful cats, don't forget them), and renovated inside and out. Every day we love living here.
Advice from ASB's Wealth Manager Victoria Richards
There are several key tips for young people, particularly in the 18-34 age group, in using their KiwiSaver savings to help buy their first home:
- The combination of employee, employer and government contributions (if eligible), plus potential investment returns, means your money is working harder for you.
- It's also a form of compulsory saving; your contributions go straight into your KiwiSaver account before it hits your bank account – so it removes any temptation to spend.
- The minimum rate for employee contributions is 3 per cent – but you can opt to increase that rate to 4, 6, 8 or even 10 per cent – meaning you save more and reach your goal faster.
- Being in the right fund is also hugely important. For example, if you are aiming to buy a home in the future, say 10 years or so from now, you may be best suited to being in a more growth-focused fund. They have more risk but also the ability, over time, to ride out any volatility and fluctuations in the markets and could provide a better long-term investment return.
- Finally, ASB has KiwiSaver experts who can give you advice – free of charge – to help you make the most out of your KiwiSaver investment.
Interests in ASB KiwiSaver Scheme (Scheme) are issued by ASB Group Investments Limited, a wholly owned subsidiary of ASB Bank Limited (ASB). For more information see the Scheme's Product Disclosure Statement available from asb.co.nz/kiwisaver