NZ is having housing crisis. Pricing is going through the roof at the moment. I am looking at an option to get a 2-bedroom apartment. The price varies from 750,000 to 900,000 NZD. This is not affordable for first-home buyers as we don't earn much here. Most of my friends said they have to pay for their mortgage for around 30 years.
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Wow!! That is expensive for a 2 bed, considering NZ has vast land!!! 30 years is a long time, assuming you only manage to save enough for your deposit when you're 30 years old, another 30 years to pay off the mortgage, then that's your whole life pretty much gone. Does the NZ government have any schemes to help first time buyers?
Yes exactly, spending most of our lives to work and pay off mortgage. The government does provide funding through a scheme called KiwiSaver which is also a worked-based retirement saving fund. Basically, it works like if I choose to contribute 3% of my salary towards this fund, my employer has to make a contribution of at least 3%. Also at the end of the year, the government will contribute to a maximum of $521.43 NZD. After 3 years, I can withdraw up to $10,000 from the fund to put towards purchasing my first home. It's not enough really comparing to the significant increase of housing price.
That 10k really doesn't sound a lot compared to the property prices. Hopefully you can find somewhere affordable soon
Thank you :)