K I W I S AV E R
KIWISAVER SHOULD BE ALLOWED FOR INVESTMENT PROPERTIES The Government needs to broaden KiwiSaver’s withdrawal criteria to allow more New Zealanders to access the scheme to buy an investment property, says one real estate boss.
first home, or for land to build your
but use your KiwiSaver to buy an
home, if you’ve been in KiwiSaver
investment property in say Waikato.
for at least three years. There
That’s increasingly appealing given
are also circumstances in which
the lower deposit requirements,
people may access their funds if
rock-bottom interest rates, and a
they’ve previously owned a home.
buyers’ market.”
However, there remains absolutely no opportunity to use the voluntary savings scheme to buy a property you’re not going to live in,” she says.
KiwiSaver has more than three million members with average balances of around $20,000, with many accounts experiencing volatility in value since the Covid-19 health and economic crises. Inland Revenue figures revealed today also show in April and May more Kiwis tapped into their retirement savings by making hardship withdrawals. Last year the Retirement Commissioner suggested that KiwiSaver members should be allowed to withdraw money from their accounts to buy rental properties, not just first homes. Owner of Century 21 New Zealand, Derryn Mayne, now believes the concept needs to be urgently revisited by the Government.
home for at least six months. Ms
occupier criteria was fine during
properties, using KiwiSaver, being
the Global Financial Crisis over
quickly flipped could be easily
a decade ago, as there were far
rectified. A rule could ensure
less people in the scheme and
people accessing their funds have
the average balances were less
to hold onto to their investment
than $3,000, given KiwiSaver was
property for certain amount of time.
launched in 2007.
She says enabling Kiwis to use the
“The Government needs to think
scheme to help buy an investment
of new ways to encourage property
property is a safe bet for them and
purchases. We are not short of
positive for the country. It would
buyers for now, but as a country
boast home ownership which has
we need to think laterally if we’re
declined over the past 30 years
to keep our housing market ticking
from about 78% in the 1980s to
along.” The Century 21 New
about 55% now.
Zealand real estate boss says it’s wrong people can only access KiwiSaver as an owner-occupier property purchaser, when the reality is a lot of people simply
and the growing opportunities out
want to live.
“You can withdraw funds for your
using the scheme must live in the Mayne says any fear of investment
can’t afford to buy where they
broadened.
for an investment property, those
Ms Mayne says the strict owner-
“Given these unprecedented times there, the rules now need to be
As KiwiSaver funds cannot be used
deliver a strong capital gain over the long-term. What’s more, such a simple policy tweak would give a shot in the arm to New Zealand’s property market and help the overall economy,” says
“If you live in Auckland and can’t afford to purchase there, you should be able to stay renting C21 MARKET PULSE
“Residential property will always
07
CENTURY 21
Derryn Mayne.
