We Tell You About Tiny Homes, KiwiSaver Withdrawal & HomeStart Grants

Amanda Morrall, from Simplicity KiwiSaver covers the ins and outs of using your KiwiSaver for a tiny home.

With so many aspiring first-time home buyers priced out of the market in Auckland, Wellington and Christchurch, tiny homes are turning heads.

It’s easy to understand why.

They’re small, cute, cozy and a heck of a lot more affordable than your standard three-bedroom home in Auckland worth an average of $1 million. That’s a lot of money, especially when that million-dollar brick and tile job might need some work to make it warm.

Tiny homes cost less to build, heat and maintain but are they viable for a first-time home buyer wanting to use KiwiSaver to finance the dream?

As with most big investments, it pays to do your research.

What Can Your KiwiSaver Withdrawal Be Used For?

Here’s some key points to digest before you buy the kitset package online.

Your KiwiSaver funds can only be used to purchase the land that you plan on building the tiny and not the house build itself. If you were thinking you could convert grandpa’s classic hippy truck into a tiny house and roll it onto the site, think again. The house on your plot of land needs to be on a fixed foundation.

This will be a disappointment to those who’ve spend hours on Pinterest exploring those beautifully formed bespoke homes on wheels.

Plans, Pricing and Construction Timing

Another key thing to be aware of is that if you’re in a position to finance the build, you’ll need to have those plans firmly drawn; including pricing, start and finish times and proof that they meet of relevant building codes in the district you’re building in. Continue reading “We Tell You About Tiny Homes, KiwiSaver Withdrawal & HomeStart Grants”