Kiwis are in love with owning their own piece of paradise. We like to own our own homes. We’re a nation of number eight wire, DIYers, that love to take on a project. Property is also a robust pillar of a smart retirement plan.
Owning your own home teamed with having a healthy KiwiSaver balance, means you will increase the chance of living the life you are planning for, after 65.
The Retirement Commissioner (and everyone else who thinks we should know) is telling us we are going to live longer, plus we’re having smaller families, so we can’t rely on government super to live on, in our old age.
The government recognises this and has put in a pretty good plan to help. You now can access your KiwiSaver balance and get a free grant to help buy your first home.
Yet the Reserve Bank have forced banks to increase the deposits people need to buy their first home. Who does this hurt? Mainly 20 and 30 year olds as they’re in that first home buying space. Who does this protect? Mainly the banks from themselves. Deposit restrictions mean the banks have more fat if a person defaults on a loan lending. Does this help the borrower? Not really, but it’s great for the banks (and their thriving profits).
Silver suits will appear on TV to tell us all what a great thing they are doing on our behalf. Hmm – I must be starting to become a cynic!
Just one of the mixed messages we receive on a daily basis.
Stay current with what’s having an impact on your financial health. Call us. No question is a silly one.
John Barber
WealthDesign – a life well planned