We frequently receive questions regarding using KiwiSaver to buy land, so we put together this article to give you all the details you need to know when considering purchasing land with your KiwiSaver balance.
Many New Zealanders will be glad to hear that you can use KiwiSaver to buy land, however, you must purchase the land with the intention of building a house on it and living in it. Fortunately with this caveat, there is no time limit on when you must build a house on that land.
It’s important that you apply for the KiwiSaver first home withdrawal prior to buying this land, as if you don’t, you won’t be eligible to withdraw your KiwiSaver savings in the future (for instance when building on that land).
Do You Qualify?
To make sure you qualify for using your KiwiSaver deposit to buy a piece of land, there are a few typical requirements you must satisfy. These include:
- You must not already currently own a house or land
- You must have been a KiwiSaver member for at least three years (or a member of another complying superannuation scheme)
- You must be purchasing a house or land in New Zealand
- You must intend to either live in the house, or in a house in future on the land which you’re purchasing
- You must not have made a KiwiSaver first home withdrawal previously
- In most circumstances, you must not have owned a house or land previously. Refer to our blog linked here that explains under what circumstances you can make a withdrawal from your KiwiSaver balance when you’ve previously owned a home
When you withdraw KiwiSaver savings for this land deposit you need to make sure you leave $1,000 NZD in your account. You’ll be able to withdraw your entire balance including your personal contributions, employer contributions, voluntary contributions, and government contributions except this $1,000, as it’s required by KiwiSaver to keep your account open and continue growing for your retirement withdrawal.
Where To Go From Here?
If you’re intending on using your KiwiSaver withdrawal for purchasing land, I can help you with the administration process of dealing with your provider, and ensure the withdrawal is handled smoothly when the time comes.
I can provide you complimentary KiwiSaver guidance on first-home/land deposits. Just click the button below, fill out some basic information, and we’ll get in touch with a simple to follow plan to help you with your withdrawal.