How to save for other house related costs.
When buying a house it’s not just the deposit you need, but you also need to have money for the lawyer, and any reports you want such as the building report, valuation etc.
If you have enough deposit this money can just come off that, and still leave you with enough, but if you are going to be tight on deposit, you need to save especially.
You may get some cash contributions from the bank which will cover this, but only on settlement date, and what you get depends on how much you borrow. If you don’t have a 20% deposit you may get nothing or very little.
I always suggest try to get to 2-3000 dollars, which allows for a couple of reports and the lawyers. If you get legal contributions you won’t need all of it, but it also allows a buffer if you are unfortunate enough to need to get reports on more than one property.
You cannot use KiwiSaver for these costs, so set up a savings account especially and put aside money each pay for the house related costs.
You should also consider saving for moving costs, unless you are going to do it all with family and friends.
You will get your bond back if you are renting, but that could be well after you settle on the new house, so best to have the money first.
If you need some help planning this out, the DUX team can help you.