Warehouse Money Survey Shows Young People More Interested in Their OE Than Buying a House

A new survey from Warehouse Money has shown that more than half of those aged 18 to 29 who are saving for something are putting money aside for travel. Another 47 per cent were saving for a first home. Hadyn Halls, Executive General Manager for Warehouse Money, said it suggested young people were more interested in travelling than they were in getting into property.

 

Adviser, Liz Koh, said a desire to travel was not new.  "It may be that [there are now more saving for travel] because the whole house thing has become more unobtainable. They think they might as well go and travel, give up on a house for now and come back and have another go in a few years' time when the market is more sensible."

 

However, young New Zealanders are being told they can have their OE and a house, too. Liz Koh says she advised young people to buy a house before they left, and rent it out while they were overseas. That would give them an asset to come home to. That had become easier thanks to KiwiSaver, she said. Many people, who otherwise would have put all the savings into a travel fund, still now had money set aside in KiwiSaver that they could use for a house deposit.

 

If they could also get a low-deposit loan – either through a Welcome Home Loan or by using one of the banks' 10 per cent of new loans allowed to be issued without 20 per cent deposit – they could buy an entry-level property. KiwiSaver requires buyers to live in the property for six months. "What I encourage is that they not think about buying the big flash family home as their first home, if they can be as bit more modest and make that first home their potential investment property, that's a fantastic start."

 

Warehouse Money was started to help New Zealand families get more out of every day with financial products and services from a trusted and loved Kiwi brand, so to find out more please visit the website at http://www.warehousemoney.co.nz .