PHOTO: CHRISTEL YARDLEY/STUFF KiwiSaver providers say closed borders and low interest rates are making houses appealing.
KiwiSaver providers have seen a spike in first-home withdrawals since lockdown, as Kiwis put their travel savings towards getting on the property ladder instead.
Louise Toner, 22, had been saving for a year to move to Ireland with her 3-year-old son before the Covid-19 lockdown hit and borders closed.
“I was supposed to be there in June,” Toner said. “I planned on travelling for the next two years before settling down.”
But as her travel plans had been put on hold, Toner said she was considering putting her savings towards her next goal. Buying a home.
“I was reluctant to chuck all my money in a house when I could be getting better returns from shares and managed funds. But my situation has changed a bit,” Toner said.
In April the Reserve Bank of New Zealand removed loan-to-value ratios (LVR) restrictions for 12 months, which should make it easier for first-home buyers to purchase a house with a smaller deposit.
Home loan interest rates have also hit record lows, with HSBC announcing a new low of 2.45 per cent for one year fixed this week.
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