Helping Kids into Their First Home

Supporting the Next Generation: How Kiwi Families Can Help Kids into Their First Home

In New Zealand, homeownership is the dream of many young Kiwis, but it is becoming increasingly difficult to achieve. The average age of first-home buyers is about 34*, compared to their early 20s a few decades ago. This increase in age has been largely driven by rising property prices, which have increased by over 80% in the past decade, particularly in major cities like Auckland.

More recently young people have faced tighter lending restrictions, with the Reserve Bank of New Zealand enforcing stricter loan-to-value ratios (LVRs), making it more challenging to secure a mortgage without a substantial deposit. Despite these hurdles, a recent survey by ANZ Bank found that 72% of young Kiwis still consider owning a home an important life goal. But 60% cited the need for parental or familial support to make their homeownership dream a reality.*

Families can play a vital role in helping their children or grandchildren secure their first home. This support takes many forms, not all of them financial.  At Fletcher Living, we believe in making homeownership achievable for the next generation, offering competitively priced, high-quality homes designed to suit the needs and budgets of young buyers and are here to help you navigate this journey.

1. Start with a Solid Financial Plan

The first step in helping your children or grandchildren buy their first home is to develop a comprehensive financial strategy. Having an open and honest conversation with them about their current financial situation, budgeting and goals will help them understand their starting point and create a pathway to save for a deposit. Nearly 65% of Kiwi parents are either providing financial support or planning to provide financial support to enable their children purchase a home*. This takes various forms, from gifting a lump sum for a deposit to acting as a guarantor on a mortgage. With the median house price in New Zealand hovering around $900,000 as of early 2025*, a 20% deposit could amount to over $180,000—highlighting the importance of early financial planning.

2. Educate and Empower

Empowering your kids with sound financial literacy is another critical aspect of preparing them for homeownership. A study by the Commission for Financial Capability found that young New Zealanders who received financial education were 2.5 times more likely to feel confident in their ability to manage money effectively*. This underscores the importance of educating the next generation about budgeting, saving, and managing debt. Encouraging them to seek professional advice from mortgage brokers or financial planners can also help them navigate the complexities of buying a home.

3. Explore Financial Assistance Options

There are government schemes and grants available that can make the home buying process more accessible for first-time buyers. Do your research as depending on your personal circumstances and background you may be able to access additional support.  Additionally, KiwiSaver First-Home Withdrawal allows first-time buyers to withdraw their KiwiSaver savings to put towards a home deposit.

3. Don’t rule out co-ownership

As the cost of property ownership has risen across the globe, so has the trend towards co-ownership. This can offer those not able to afford to get onto the property ladder themselves, being able to achieve the security and stability of home ownership by sharing the cost with someone else. That can be a friend, but also family or extended family. Some banks even have special lending options available to make this easier.

4. Why Fletcher Living is the Right Choice

When it comes to choosing a home, affordability and quality are key considerations. Fletcher Living offers a range of homes that are not only competitively priced but also built to the highest standards,  with modern living in mind. A new home has many benefits such as no surprises, manageable maintenance costs, energy-efficient technologies resulting in lower running costs and high-quality materials ensuring long-term value.

Homeownership for the Next Generation

Helping your children or grandchildren buy their first home is one of the most meaningful investments you can make in their future. By providing them financial guidance, and support them navigating the homebuying process you can set them on a path to future home ownership.

Fletcher Living is committed to creating affordable, high-quality homes that are perfect for first-time buyers. Our knowledgeable team can help you navigate the complexities of the housing market and ensure a smooth and successful experience for your loved ones.

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