To buy or not to buy...

Take time to enjoy your new home.

With the property market having changed so drastically as of late, Kiwis are eager to find out more information about behaviours and attitudes towards home ownership in New Zealand. The BNZ Financial Futures research was conducted by Colmar Brunton and shows insight into the markedly different financial behaviour of people on both sides of the property fence - home owners versus non-property owners. A snapshot of the findings is included below:

- Non-property owners are twice as likely to be living pay cheque to pay cheque versus property owners

- 43 per cent of home owners are paying off their mortgage faster than required

- 35 per cent of non-property owners say they let their finances 'take care of themselves'

- Nearly half of first-home buyers plan on raiding their KiwiSaver for a house deposit

The major outcome of the research is that planning is key to changing the financial outlook for non-property owners. Nearly half (47 per cent) of non-property owners plan to raid their KiwiSaver funds in order to get on to the property ladder.

Ten-step process to buying your first home

- Figure out how much you can borrow

- Look into KiwiSaver

- Talk to parents and/or family members who may be in a position and willing to help financially or act as guarantor

-Get a solicitor to help you with all of the paperwork, and sign off on any houses you are looking to buy

- Find a real estate agent that best understands your needs

- Scope the area you are interested to buy in. Where is that area headed? Is it a good school zone? What is the public transport like? How are house prices in that area faring?

- You've found your dream home. How is it being sold? Offer and negotiation, auction or tender? Start the KiwiSaver withdrawal process

- Get a LIM (Land Information Memorandum) report, and a QV (Quotable Value) report or registered valuation

- At your final inspection, double check that everything works and that none of the fittings are missing.

- Enjoy it and celebrate!

Withdrawing your KiwiSaver

It's a good idea to get cracking on your KiwiSaver HomeStart Grant and KiwiSaver first home withdrawal as soon as possible - it can hold you up.

The rules-Have to have been part of KiwiSaver Scheme for three years + to be able to withdraw for first home

- Has to be your first home

- Single income under $80,000 ($120,000 double income)

- The HomeStart Grant is $3000 per person if you've both had KiwiSaver for 3 years, $4000 for four years and $5000 for five years (five years + is still $5000 per person)

- You will need to leave $1000 in your KiwiSaver account

- If you're buying a newly-built house, a house off the plans, or land on which you intend to build a new house, then you may qualify for twice the amount of benefit depending on your single/double income - $2000 for each year you've been contributing, up to a maximum of $10,000.

- Shelley Hanna is on leave.