With Reserve Bank changes to bank lending rules making it harder for some first home buyers to get in to the property market, here’s some tips to help your children into their own home and avoid them living with you in your retirement.
Here’s how to help:
- Enrol them into KiwiSaver and start them saving a deposit towards a first home. KiwiSaver has a good First Home Buyers package but it does require a minimum membership period so start them saving now!
- Teach them some basic money skills – how to budget, save money and plan ahead. Kids learn from their parents so model the financial behaviours that your kids need to learn and teach them to make smart financial decisions.
- Think about tertiary education expenses – having a large student loan will not help get your child into their first home and increase their outgoings once they have graduated. Encourage kids to plan ahead for possible tertiary study expenses and start saving for this from after school jobs etc. If possible, also start a fund yourselves to assist with this cost.
For personal advice and information on the KiwiSaver First Home Buyers scheme you can Contact Us.