Advice for those about to purchase property using KiwiSaver

Lifestyle and Technology Written by Squirrel, Feb 27 2020
What does Coronavirus have to do with your KiwiSaver funds? More than you might think.

No need to panic, but we thought it was worth putting a word of caution out there for anyone who is looking at purchasing a property in the near future with KiwiSaver as part (or all) of their deposit.

It’s hard to say exactly what the long-term implications of Coronavirus will be when it comes to the economy, but we do know that the share market is currently experiencing a negative affect. (JB explains a little bit about this in his latest housing market update).

This means you might notice your KiwiSaver take a hit. In fact, one of our advisers noticed his KiwiSaver value dropped by $5,000 in a week.

So, if you’re relying on a specific amount in your KiwiSaver account to get your house deposit over the line, we suggest not waiting too long to request access to your funds. If you’re planning on buying soon but aren’t quite ready for the withdrawal stage and you're currently on an aggressive fund, it might be worth considering switching to a conservative fund until it's time to withdraw, to soften the blow.

If possible, plan to have access to some back-up funds just in case. We’ve seen people get caught out with their KiwiSaver funds before, and it’s best to plan ahead to avoid ending up in a pickle.

We’re always happy to chat so if you’re unsure about your own situation, give us a call on 0800 21 22 30.

We can help. Have a chat to one of our advisers.