Kiwi Saver

[mossy1200]

Kiwi Saver Scheme just stiffed me.

Im applying for home loan.

I had a house with my ex in 1999 but have been renting ever since.
My wife has never owned one.

I cant get first loan withdraw money but I can apply for 2nd chance

Problem is income needs to be under 100k

Due to the fact I changed jobs and had my Holidays paid out December last year it pushed my income to 103. So I cant withdraw my Kiwi Saver money as part of a deposit.

Now I need to wait until after December and re-apply once the large payout expires from the last 12 months income figures.


I kind of think this is a bit stink and its Housing New Zealand not my Kiwi bank supplier that holds the power.
Isnt it their job to help people get into a house.


This policy punishes people who take on extra hours or second jobs to save a deposit.
The 100k limit is for a couple which one has owned a home before.
They justify the second chance withdrawal rules as making sure the home buyer is in the same position as a new home buyer.

Isnt renting for the last 13 years enough proof that im in the same position?

[flyingcrocodile46]

I feel your frustration. Rates are pretty low and I hear that banks are keen to lend to people on low deposits. Perhaps you should talk to a bank or mortgage broker. (the up side of the income blow out?).

Good luck and perseverance, you will get there.

[Ocean1]

This policy punishes people who take on extra hours or second jobs to save a deposit.

As long as a majority keep selling their vote to the highest bidder you'll continue to be punished for working hard. Either get used to it or join the 55% of the population who take more tax than they contribute.

The news gets worse, you won't be retiring either.

[mossy1200]

I feel your frustration. Rates are pretty low and I hear that banks are keen to lend to people on low deposits. Perhaps you should talk to a bank or mortgage broker. (the up side of the income blow out?).

Good luck and perseverance, you will get there.

Ta

We have enough for a deposit but my Kiwi Saver is only returning 2% last 12months and the charges for running it takes that money so it would serve me better to have 12k less on a mortgage.
Also because we included it in our pre approval stage (which is now cleared) with the bank it means we have to re-apply with different figures or wait until Housing NZ gives us the ok to use it once we get the last 12months under 100k.

One option would be that I take 3 weeks off work unpaid so that at the end of October its under.
Another is to wait until December when the extra 6k drops away which will put me under also.


The thing that is hardest is that we were about to put a tender in on a house and we will have to let that one go now.

[mossy1200]

As long as a majority keep selling their vote to the highest bidder you'll continue to be punished for working hard. Either get used to it or join the 55% of the population who take more tax than they contribute.

The news gets worse, you won't be retiring either.

Im partly to blame by doing as much overtime as possible this last year. I paid more tax to have less options for the future.

[Rhys]

Im partly to blame by doing as much overtime as possible this last year. I paid more tax to have less options for the future.

Welcome to NZ, penalize those work hard, and if you earn over 50k you are classed as rich :nono:


I would talk to a mortgage broker, they can often "pull strings"

[pete376403]

Ta

We have enough for a deposit but my Kiwi Saver is only returning 2% last 12months .

Not that this has any bearing on your house finance problem, but, I was of the opinion that Kiwisaver returns were pretty shit as well however overall it's not too bad. Since the 39 months since I joined I've deposited is about 18K and the overall total is 28K. I can't think of too many other investments that would return 10K after tax in three years. (apart from buying classic bikes, p'raps?)

[Maha]

With Kiwisaver, if you fall behind in your payments, it such a biggie, you just infracted....:rolleyes:

[blue rider]

I thought Kiwi Safer was supposed to provide retirment funds when one hits 65?
And in what profession are over hours still paid. I work for an "iconic" NZ brand, but anything above 40 hours worked the company considers as a charitable donation to the company's wellbeing.

[oneofsix]

I thought Kiwi Safer was supposed to provide retirment funds when one hits 65?
And in what profession are over hours still paid. I work for an "iconic" NZ brand, but anything above 40 hours worked the company considers as a charitable donation to the company's wellbeing.

So you will be enjoying Labour Day and its celebration of the 40 hour week :laugh: My companies the same and it amuses me how there HR systems can account for you doing 40+ hours in a week but have a spase attack and try double billing hours and all sorts of crazy stuff if you do 40- to claw some work life balance back. They use all the words but speak a different language.

Kiwi Saver always had the first home buyer provision, it was one of the carrots used to sell it to younger peoples.

[mossy1200]

Looks like I can apply for special consideration due to the fact my annual leave payout pushed me over the 100k limit which is easy to see in the ird 12 month earnings printout but they arnt promissing.
If not I can wait untill January when the Dec 2011 is no longer in the 12 month period which should be 99.5 and ok.
I just cant do much overtime in the near future or if I do hold it as time off for later.

[ducatilover]

I love the part where you're not allowed the money you've earned :facepalm: :rolleyes:

[BoristheBiter]

And in what profession are over hours still paid. I work for an "iconic" NZ brand, but anything above 40 hours worked the company considers as a charitable donation to the company's wellbeing.

Blue collar work.
If I bill out overtime my guys get paid overtime.

[Akzle]

bahahahahahahahah :killingme:killingme:killingme:killingme

and you thought giving the government MORE money would help you.... :rofl::rofl::rofl:

[mossy1200]

It got worse. 20th rolled over and i was hoping i would have earnt less Aug 2012 than 2011 and it turned out I earnt more making the figures worse. Ill apply now but its not looking promissing.

[Berries]

It got worse. 20th rolled over and i was hoping i would have earnt less Aug 2012 than 2011 and it turned out I earnt more making the figures worse. Ill apply now but its not looking promissing.
At this rate you'll be able to pay cash anyway.

[caspernz]

At this rate you'll be able to pay cash anyway.

Yep, change the short term outlook and be mortgage free in 5 years maybe?

[Berries]

Move to Bluff and be mortgage free now on that salary.



The only downside being the obvious one.

[DrunkenMistake]

Move to Bluff and be mortgage free now on that salary.



The only downside being the obvious one.

Haha, could buy up the whole town with that come of income..


We got caught out with Kiwisaver recently too, not the same situation, we got caught out by not been in the scheme long enough to withdraw the money for our first home, So I have a tidy 10k sitting there that isnt going to be used for another who knows how many years haha.

[swbarnett]

Blue collar work.
If I bill out overtime my guys get paid overtime.
Not only Blue. I'm what you could call a white collar worker and we get paid overtime for any after hours work that can be legitimately on-charged to the customer.

[DEATH_INC.]

At this rate you'll be able to pay cash anyway.
I agree...I'm a little puzzled why you need your Kiwisaver money when you earn that much? :confused:

[mossy1200]

I agree...I'm a little puzzled why you need your Kiwisaver money when you earn that much? :confused:

Its a little bit want also. Seeing as its my money and saving interest on it is a better option than the poor results of the investment.
11k of the mortgage at the start is like 25k at the end.

Our combined earnings in Wellington isnt very high when good houses start 450k plus and every bit helps when you cant have a mortgage over 23 years long due to age. To save another 11k to make up the kiwi would take a while and make the mortgage period 22years instead.

[DEATH_INC.]

Its a little bit want also. Seeing as its my money and saving interest on it is a better option than the poor results of the investment.
11k of the mortgage at the start is like 25k at the end.

Our combined earnings in Wellington isnt very high when good houses start 450k plus and every bit helps when you cant have a mortgage over 23 years long due to age. To save another 11k to make up the kiwi would take a while and make the mortgage period 22years instead.
Ah...I see. That makes sense.

[mossy1200]

Ah...I see. That makes sense.

The point of the thread is that when I started kiwisaver it was to be partly for deposit(4 years ago).
At the time our income was well under 100k
The reasons its over this year is
A-I changed jobs and got 6 weeks annual leave payout plus my new jobs income in the same month dec 2011.
B-I worked as much overtime as possible to save extra money for house deposit.

Im not asking for the government home buy assist which is 1k free for every year of kiwisaver if your combined income is less than 100k

What I do want is my personal amount from my income that I put into kiwisaver.

I have enough for a deposit without BUT a large amount isnt avaliable until Jan15th so Im short of a deposit by a few thousand. I can solve this by being able to get my kiwisaver or selling my bike using that money then buying another bike with the money that cant be used as home deposit yet.

Its more frustration at the waiting while house prices have started to lift again.

[mossy1200]

Declined.

Talked to a rep today who will see if it can be moved up the scale of authority but it doesnt sound likely.

So much for a government thats spent the last week talking about getting people into their own homes.:mad:

[Batcerb]

Got to agree with you mossy, the system is not ideal :/

Back when it first came out, I was encouraged to join because if nothing else, it would be a great way to save for a house deposit.
Apprentices' who spend far too much of their pay on bikes don't think too much about long term saving.

Anyway, I'm now at a stage where I'm 1 month out from getting married, and looking at getting a place of our own - hopefully within 5 years or so. By now, I actually have a decent amount in kiwisaver, perfect for a deposit!
But here comes reality... I'm entitled to a maximum of 5k, and combined household income is close to 100k further puts that in doubt.
Despite that figure, were not "well off", save hard and are generally sensible.

As you said, the government are having a drive to get affordable housing, why not bend the kiwisaver rules slightly?

Sent from my HTC One V using Tapatalk 2

[mossy1200]

Got to agree with you mossy, the system is not ideal :/

Back when it first came out, I was encouraged to join because if nothing else, it would be a great way to save for a house deposit.
Apprentices' who spend far too much of their pay on bikes don't think too much about long term saving.

Anyway, I'm now at a stage where I'm 1 month out from getting married, and looking at getting a place of our own - hopefully within 5 years or so. By now, I actually have a decent amount in kiwisaver, perfect for a deposit!
But here comes reality... I'm entitled to a maximum of 5k, and combined household income is close to 100k further puts that in doubt.
Despite that figure, were not "well off", save hard and are generally sensible.

As you said, the government are having a drive to get affordable housing, why not bend the kiwisaver rules slightly?

Sent from my HTC One V using Tapatalk 2

I didnt apply for the 5k give away just my own contribution into the scheme back.
Im being told im not in the same situation as a first home buyer even though I have been renting the last 13 years.

100k combined income in wellington city isnt alot. It only just leaves you able to loan for a mortgage of 450k.
At below the 100k cap you would struggle to repay a mortgage in the city.

The government claiming to fix NZs problems by getting more people into their own homes feels like they are taking the piss out of me also.:brick:

[BoristheBiter]

The problems is everyone has been told what a great investment housing is.
So the houses already built will never be sold for less than they were bought (unless the bank says so).

And to build a house now everyone wants, 4 bedrooms, two bathrooms, fancy kitchens, gardens etc so again the price is higher than it needs to be.

[Ocean1]

And to build a house now everyone wants, 4 bedrooms, two bathrooms, fancy kitchens, gardens etc so again the price is higher than it needs to be.

I don't think invesment frenzy is the reason house prices are so high. Yes expectations have grown beyond what most should afford, but the fact remains that if the price of new 3 bdrm houses were reasonable then existing properties wouldn't cost what they do.

The cost of building is well over the top, and I reckon it's caused by the material supply monopoly and the local council development monopoly. Innapropriate and rising building code compliance costs don't help.

[mossy1200]

Sneaky

No more $1000 kick start.
They got that through quietly.

While on the topic my workmate had his second chance withdrawal approved to buy a new house even though he sold his house 2 months ago to buy a lifestyle block.

[Delerium]

Welcome to NZ, penalize those work hard, and if you earn over 50k you are classed as rich :nono:


I would talk to a mortgage broker, they can often "pull strings"


Pretty much, the working middle class gets shat on. Not paid enough to pay for lots of accountant hours, earn too much for benefits.