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Let’s face it, getting into the property market isn’t as easy as it used to be, especially for young people.
Here in Franklin, prices have continued to rise, and saving for a first home can feel pretty overwhelming. But with a bit of planning (and some parental support), there are ways to help your kids get a foot on the ladder.
One of the first things to check is whether they can use their KiwiSaver. If they’ve been contributing for at least three years, they may be able to withdraw most of their savings for a first home.
Some parents choose to gift part of the deposit or even go in as co-owners. That could mean helping with the upfront costs or buying a property together. Just make sure everyone’s clear on how it’ll work — having a lawyer draw up an agreement can avoid headaches down the track.
With gifting, there is no expectation for the money to be repaid, and banks are very clear on this.
Another option is using the equity in your own home as a guarantor to help them secure a mortgage. It’s a generous move, but it does come with responsibilities, so it’s worth talking to a financial advisor first.
Encourage them to keep an open mind, too — more affordable areas in Franklin, like Waiuku or Tuakau, can be a smart starting point.
With the right support and good advice, home ownership is still possible, even in today’s market.
