October 16, 2019
KiwiSaver eyed for investment properties
The Commission for Financial Capability is considering a proposal that people be allows to dip into their KiwiSaver accounts to invest in property.
Currently withdrawals are allowed for a deposit on a first home if the saver will be living in it.
But interim retirement commissioner Peter Cordtz says as part of the three-yearly review of retirement income policies, he’s considering a recommendation to be more flexible about what constitutes a first home.
The idea came from an Auckland Māori mortgage broker who was looking at the situation of her clients.
"They were interested in buying a property back home where they would eventually return. They were living in Auckland, need to be here for their mahi and to earn but can’t afford to buy here so this really us an extension of that first home buying criteria that is already there to allow you to buy your first property effectively as an investment," Mr Cordtz says.
He says it could be a way to address a massive decline in home ownership rates since the 1980s, particularly for Māori and Pasifika, which is now showing up in a 92 percent increase over the past six years in the total accommodation supplement paid to people 65 and over, from $88 million in 2013 to $170 million in the last financial year.
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