Government Incentives for New Property Buyers in New Zealand

If you're thinking about buying a new property in New Zealand, you're in luck! The government has several incentives to make purchasing new builds more affordable, especially for first-home buyers and investors. These initiatives aim to make homeownership accessible while promoting modern, energy-efficient homes.

KiwiSaver First Home Grant

One of the most well-known incentives is the KiwiSaver First Home Grant. If you’ve been a contributing member of KiwiSaver for at least three years, you may be eligible for a grant to help with your first home purchase. Here’s how it works:

• New Builds: You can receive up to $10,000 if you’re buying or building a new home. That’s $2,000 per year of contributions (up to five years).
• Eligibility: You must have contributed at least 3% of your income to KiwiSaver during your membership, and the property’s value must fall under certain price caps, depending on the region​.

Welcome Home Loan Scheme

The Welcome Home Loan scheme is another incentive designed to help first-home buyers. Under this scheme, you only need a 5% deposit to buy a home, and the rest can be financed by participating banks. While this loan is available for both new builds and existing properties, it is particularly beneficial for new builds as they often offer better long-term value and lower maintenance costs.

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Interest Deductibility Exemption for New Builds

Investors in New Zealand are offered a significant tax advantage when purchasing new builds. The government has introduced an interest deductibility exemption for new builds that lasts for up to 20 years. This means you can claim interest deductions on your mortgage, reducing your overall tax burden. This exemption makes new builds a popular choice for property investors​.

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Lower Deposit Requirements for New Builds

Banks and mortgage providers typically offer more flexible deposit options for new builds. In many cases, you can secure a new build with as little as a 10% deposit, making it easier for first-home buyers to get on the property ladder. Lower deposit requirements, combined with government grants, can make buying a new home more affordable than ever before​.

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Energy Efficiency and Long-Term Savings

New builds in New Zealand are constructed to the latest building standards, which include energy-efficient features such as double glazing, insulation, and eco-friendly heating solutions. These features can result in lower energy bills, saving homeowners money in the long term. By purchasing a new build, you not only benefit from government grants but also enjoy ongoing savings on utilities​.

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Make the Most of Government Incentives with KEY2 Real Estate

Buying a new build is a fantastic option for homebuyers in New Zealand, thanks to the range of government incentives available. From KiwiSaver grants to tax advantages for investors, the support provided makes new homes a smart and affordable choice. At KEY2 Real Estate, we can help you find the perfect new property and guide you through the process of securing these valuable incentives. Contact us today to learn more!

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