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Why KiwiSaver Balances Make It Easier To Buy Your First Home Now · That Home Loan Hub

• 0:10
  SPEAKER_01: Hello and welcome back to that Homlon Hap.
• 0:12
  SPEAKER_01: Today I'm joined by Professor Buchanan.
• 0:15
  SPEAKER_01: Hello, James.
• 0:16
  SPEAKER_00: Hello, Mike Perrou, mortgages.
• 0:19
  SPEAKER_01: What was that?
• 0:21
  SPEAKER_01: Alright, James, what are we talking about today?
• 0:24
  SPEAKER_00: Oh well, there's a lot of things to talk about today's Evan Esau, but I think we could start with, in my opinion, that it is great.
• 0:32
  SPEAKER_00: It is a great situation conditions for first home buyers at the moment.
• 0:38
  SPEAKER_01: Absolutely.
• 0:39
  SPEAKER_01: We've covered this off with Jordan, we've covered it off with Kounch.
• 0:43
  SPEAKER_01: Give me your angle.
• 0:44
  SPEAKER_00: Okay.
• 0:44
  SPEAKER_01: What's your perspective?
• 0:45
  SPEAKER_00: Did they have a particular angle that it was positive or negative?
• 0:49
  SPEAKER_00: But I I think it's positive because purchasers are able, or first home buyers are able to, they're not being rushed.
• 1:00
  SPEAKER_00: You know, so they're not in this, they're not often in this situation where there's a multi-offer.
• 1:04
  SPEAKER_00: So quite often they're the only person offering for a property and it's been on the market for three or four months.
• 1:11
  SPEAKER_00: It's not they're not moving, depending on where you're on what areas you are.
• 1:16
  SPEAKER_00: A lot of first home buyers have pretty decent deposits because of they've been in Kiwi Saber for a length, uh, you know, 10-15 years now.
• 1:26
  SPEAKER_00: So you can see that coming through.
• 1:28
  SPEAKER_00: And the low interest rates are just really incredible from an historical point of view.
• 1:35
  SPEAKER_00: Everybody thinks back to COVID, right?
• 1:38
  SPEAKER_00: Compared to COVID.
• 1:39
  unknown: Okay.
• 1:40
  SPEAKER_01: Court COVID wasn't an anomaly.
• 1:42
  SPEAKER_00: Anomaly?
• 1:43
  SPEAKER_00: Anomaly.
• 1:43
  SPEAKER_00: Anomaly.
• 1:44
  SPEAKER_00: Hey, I can't believe I got something right.
• 1:46
  SPEAKER_00: And I think that's usually the other way around.
• 1:50
  SPEAKER_00: So historically speaking, interest rates are just bang on long term, I think.
• 1:56
  SPEAKER_01: Okay.
• 1:57
  SPEAKER_01: Awesome.
• 1:57
  SPEAKER_01: So you mentioned something around the KiwiSaver and how people are in a very good position with Kiwi Savers and the future of the KiwiSaver, you know.
• 2:09
  SPEAKER_00: Yep.
• 2:10
  SPEAKER_01: How it could benefit.
• 2:11
  SPEAKER_00: Yeah, it's really interesting because I follow a lot of news in Australia as well as New Zealand.
• 2:17
  SPEAKER_00: And you can just see how the super scheme, the compulsory super scheme that they've got over there, has just transformed that whole country.
• 2:26
  SPEAKER_00: It is an incredibly wealthy country, and they've got trillions of dollars in, you know, could they be going for about 20 years longer than us, I think.
• 2:35
  SPEAKER_00: So they're just that much advanced.
• 2:37
  SPEAKER_00: But as an as a mortgage advisor, even though ours is not compulsory and it's only 4%, I think in Australia it's 10%.
• 2:46
  SPEAKER_00: You I'm beginning to see, you know, people in their early to mid-30s, they've been in Kiwi Saver 10, 15 years, and you're seeing really good balances.
• 2:56
  SPEAKER_00: And, you know, that's their deposit, that's getting them in the door.
• 2:58
  SPEAKER_00: That's almost a 20% deposit in most cases.
• 3:02
  SPEAKER_00: And so looking ahead 10, 15 years, if we're still allowed to use our Kiwi Saver for deposits, you can see that there there's going to be quite a bit of a bit more competition from first home buyers in the market because they'll have more money.
• 3:22
  SPEAKER_00: I don't know if that how if that quite makes sense, but it it should create competition in the market for house prices.
• 3:30
  SPEAKER_01: And we don't necessarily want house prices to go up, but I was about to say, but hopefully the price is not gonna go too high, right?
• 3:37
  SPEAKER_00: Yeah.
• 3:37
  SPEAKER_01: Yeah.
• 3:38
  SPEAKER_00: Well, I think there's a lot of things going on at the moment that I I think a lot of key participants in the market are beginning to realise that high property prices is not good for us as a country.
• 3:51
  SPEAKER_00: Sort of, you know, slowly, you know, increasing property prices, that's fine.
• 3:57
  SPEAKER_00: But having these ginormous fluctuations in property price, it just sort of leads to speculation.
• 4:03
  SPEAKER_00: And that and that doesn't really help first home buyers or people who can't, you know, people can't get into the market that easily.
• 4:10
  SPEAKER_01: Yeah, exactly.
• 4:11
  SPEAKER_01: And I think like this is what we've covered in the previous episodes that you know, right now is a perfect time to buy.
• 4:16
  SPEAKER_01: The interest rates are historically low, excluding the anomaly.
• 4:21
  SPEAKER_01: Yeah.
• 4:22
  SPEAKER_01: With COVID.
• 4:23
  SPEAKER_01: And you know, the property price is not too high.
• 4:25
  SPEAKER_01: And hopefully they will just remain flat for a little bit while the economy recovers.
• 4:30
  SPEAKER_01: And if you are on that edge of should I buy, should I not buy, you know, absolutely come talk to us, right?
• 4:36
  SPEAKER_01: You will confidently guide them whether that's a good time for them to buy or not.
• 4:41
  SPEAKER_00: Absolutely.
• 4:41
  SPEAKER_00: And everybody's gonna have a different situation, so it's definitely a good time to come and talk to us and get the ball rolling.
• 4:49
  SPEAKER_00: Because I'm dealing with clients, it's just gonna take a few more months to get them sorted.
• 4:54
  SPEAKER_01: Yeah, and I would love to explore this with you at the next episode.
• 4:58
  SPEAKER_01: And I think it's really important to dive into those cases and show them how the right now, the conditions right now, are the perfect for the first-time bias.
• 5:07
  SPEAKER_01: Absolutely.
• 5:08
  SPEAKER_01: Awesome.
• 5:08
  SPEAKER_01: Well, thank you.
• 5:09
  SPEAKER_01: Let's do a quick recap basically.
• 5:11
  SPEAKER_01: If you've got a KiwiSaver, fantastic.
• 5:13
  SPEAKER_01: Keep it growing.
• 5:14
  SPEAKER_01: If you're looking to join a Kiwi Saver, if you're fresh to the country or fresh to the employment or fresh, freshly turned 18, you know, absolutely join a Kiwi Saver because next year I believe the Kiwi Saver compulsory contributions from the employer are also going up.
• 5:28
  SPEAKER_01: And you know, the employer will have to do 4% versus 3% now.
• 5:31
  SPEAKER_01: And fantastic news for those that are working and getting extra money into their Kiwi Savers.
• 5:36
  SPEAKER_01: So um awesome, James.
• 5:38
  SPEAKER_01: Thank you so much.
• 5:38
  SPEAKER_01: And talk soon.
• 5:40
  SPEAKER_00: Absolutely.
• 5:40
  SPEAKER_01: Bye.
• 5:41
  SPEAKER_01: Bye.