Over half of young Kiwis expect family money to help them buy a first home

A growing number of young Kiwis are expecting the ‘bank of mum and dad‘ to come to the party with a first home deposit, a KiwiSaver digital advice provider survey shows.

It comes as Core Logic figures show house prices in August were up by a whopping 27 percent on the same time last year, making it difficult for first-home buyers to get onto the property ladder. Real Estate Institute of New Zealand (REINZ) August data shows the national median house price was up 25.5 percent year-on-year, at $850,000.

Experts expect the rate of house price growth to slow, citing Government housing measures,  interest rate rises and tighter LVR restrictions, to be further reduced from November 1.

A survey conducted by KiwiSaver adviser BetterSaver of 204 Kiwis aged 16-24 (July to August), shows over 80 percent expect to buy a home down the track.

Financial help from family, personal savings, and KiwiSaver were cited as the top three ways to get onto the property ladder.

Across this age group, 60 percent thought the average person would have to rely on family money to buy a first home. And over half expect their own family to pitch in when it comes their time to buy.

BetterSaver CEO Joe Taylor said the research is indicative of the Kiwi “she’ll be right” attitude towards buying a home.

It shows the housing market is “difficult to crack” for young people.  But it also raises questions on whether parents are aware their children are expecting help, and about the overall financial preparedness of young people, he said.

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