Should You Be Able to Use KiwiSaver For Investment Property? | Ep. 47

In this episode, we discuss a recent idea that has been suggested by the Interim Retirement Commissioner – should you be able to use your KiwiSaver to buy your first investment property (if you don't already own another property).

This is an important topic because we know that some groups in NZ are finding it hard to get onto the property ladder – and yet the NZ superannuation was never meant to support accommodation costs, it was always assumed that these would be sorted. 

However, only 20% of Pacifica people own their own home, and only 35% of Maori own their own home. This is much less than their Pakeha counterparts. And we know that the majority of Pacifica people live in Auckland, where house prices are relatively unaffordable.

We add our support behind the idea of using KiwiSaver to buy investment property, because: a) it means that you don't need to buy in the same city that you live in. This means that people struggling to buy in their home city can still access the property market, and b) because it means that multiple people can pool their KiwiSaver – so that four people could pool their KiwiSaver's to buy an affordable 2 bedroom unit. This means that it would be much more affordable for these people to access the property investment market. 

If you are interested in learning more about property investment, then head to the Opes Partners website where you can read the Epic Guide to Property Investment in NZ, this is the most comprehensive guide to property investment in NZ.