Buying our first home in Auckland.

Q: My partner and I live in Auckland and do not own a home – but would like to have our own place to hand down to the kids. Auckland house prices dictate that we’d never have the funds to purchase here – and we need to keep renting here while the kids are at school, and so they’re close to their Mum who shares custody. What sort of deposit would we typically need for a first home – is it the same as an ‘investor’ (40%?) because we may have to rent it out for a couple of years until we could occupy?  Would we be able to use our kiwisaver towards the deposit? This would be a first home for the both of us.

Tahei replies: Affordability comes down to what you're willing to put up with to get on the ladder.  And your "today" house doesn't have to be your "forever" house.  It doesn't necessarily have to be the house you're handing down to the kids, but equity - a foot on the ladder.  Auckland house prices are insanely high, but it's not impossible to buy a first home, it just might not be in the suburb you can afford to rent in.

As a first home buyer, you might be eligible for special bank loans such as the Welcome Home Loan where you only need a 10% deposit, as long as your income and house purchase price are within its criteria.  You can use your KiwiSaver and you could be eligible for a HomeStart Grant .

However if you have to rent it out, you will be considered an investor and you'll need a 40% deposit.