We’ve all dreamt of giving our children and grandchildren a head start in life, haven’t we? What if we told you the KiwiSaver scheme, often associated with retirement savings, can be the golden ticket to making this dream come true? Let’s unravel the magic of using KiwiSaver as the ultimate savings tool for your young ones’ first homes.
The Kiwi Dream: A Home to Call Their Own
There’s no denying it: the New Zealand property market can be daunting. As property prices continue their upward climb, many young Kiwis wonder if they’ll ever step onto the property ladder. Enter KiwiSaver – the unsung hero in the quest for home ownership.
Why KiwiSaver is the Perfect Savings Vessel
Compound Growth: Starting a KiwiSaver account early for your kids or grandkids means their savings will benefit from the magic of compound interest. Over time, even small contributions can snowball into a sizeable sum, giving them a substantial head start when they’re ready to buy.
· Member Tax Credits: Free money? Yes, please! Once they turn 18, for every dollar they contribute to KiwiSaver, the government chips in 50 cents, up to $521.43 annually. It’s like a yearly bonus, boosting their home deposit fund.
· First Home Withdrawal: After being in the KiwiSaver scheme for three years, members can withdraw most of their savings to put towards a first home. That includes your contributions, their contributions, employer contributions, and all the investment returns. It’s like a treasure chest waiting to be unlocked!
· HomeStart Grant: The cherry on top? If they’ve contributed to their KiwiSaver for at least three years, they might be eligible for the HomeStart Grant, offering up to $10,000 for an individual or up to $20,000 for a couple to help with the purchase of a first home.
Setting Them Up for Success
By initiating a KiwiSaver account for your young ones, you’re not just giving them a savings account; you’re gifting them a future filled with possibilities. Imagine the joy of watching them receive keys to their first home, knowing you played a pivotal role in that milestone.
A Legacy of Love and Foresight
While we cherish the memories of bedtime stories and family holidays, securing a future home for your kids and grandkids is a legacy they’ll appreciate for a lifetime. It’s an act of foresight, love, and unparalleled generosity.
So, guardians of the next generation, the Kiwi dream of home ownership is very much alive, and the key lies in the KiwiSaver treasure trove. Let’s harness this tool and pave a golden path for our young ones, ensuring they have a cozy nook in New Zealand to call their own. After all, a home is where stories begin, and dreams blossom.
Its quick and simple to set up KiwiSaver for your young ones futures – click here to book a no-obligation chat with a FoxPlan Adviser