That Home Loan Hub
Welcome to That Home Loan Hub, your ultimate guide to mastering the world of home loans and property. I'm Zebunisso Alimova, here to simplify the complexities of real estate and provide you with expert insights and the latest trends.
Whether you're a first-time homebuyer, an experienced investor, or simply curious about the property market, this podcast is for you. Join me each week as we unlock the secrets to property success and help you make informed decisions. Let's dive into the world of property together!
That Home Loan Hub
Property Inheritance: First-Home Buyer Dilemmas
Property inheritance creates a surprising legal maze that many first-time home buyers don't see coming until it's too late. We dive into a listener's real dilemma when Jackie discovered her carefully laid plans to use KiwiSaver for her first home purchase might be derailed after unexpectedly inheriting property.
The moment your name appears on a property title—even through inheritance rather than purchase—your legal status shifts from first-time buyer to existing property owner. This seemingly small distinction carries significant consequences, potentially blocking access to KiwiSaver funds you've been counting on for your deposit. We've seen multiple cases where people discover this roadblock years after inheritance, creating devastating financial surprises at the worst possible moment.
We explore practical solutions, including immediately consulting a solicitor when inheritance occurs, investigating second-chance KiwiSaver withdrawal options, and ensuring property titles are strategically arranged. The episode also unveils the hidden but crucial role lawyers play throughout property transactions—from reviewing purchase agreements to managing your KiwiSaver withdrawal (which you'll never actually see in your personal account) to ensuring you're registered on the correct property title. As one cautionary tale reveals, some homeowners have discovered decades later they've been paying for the wrong property due to title registration errors!
Have questions about inheritance, KiwiSaver complications, or the role of solicitors in your property journey? Connect with us on Facebook, Instagram, YouTube or TikTok. Your questions inspire our content and help fellow Kiwis navigate these complex waters. Share this episode with anyone facing inheritance or planning their first home purchase—it might save them from unexpected complications.
Kia ora. Welcome back to the episode, kunj Cares. Hey, kunj Kia ora, everyone, today we're going to talk about something very, very important that happens every now and then in our clients' lives but can significantly improve or not improve their situation. We're going to talk about Inheritance, yeah, and in particular, we're going to talk about when you're inheriting a property. We had Jackie Colin with a question around what to do because recently she inherited a property and how will that affect her as a first-time buyer in the future? Because she actually had KiwiSaver going, she was saving away and she was going to buy a house, but she didn't realize that she was going to actually inherit a property. So, Conch, let's dive into this Inheriting a property.
Speaker 2:Well, inheriting a property basically means you get to own that property so it's already automatically going to be yours with your name on the title. So now that may affect your opportunity to use your KiwiSaver to buy your first home, because obviously KiwiSaver is designed for first home buyers. It helps with the deposit side. However, with inheriting a property, it evidence that you already own a property, so that will affect the KiwiSaver. So good to get some legal advice on that to see whether KiwiSaver is still an option to withdraw. I mean there's the second chance KiwiSaver withdrawal option. However, again check with your solicitor check with your solicitor.
Speaker 1:Yeah, so this is not a financial advice, guys, but we just thought we'll bring Jackie's situation to your attention because often in life you may not be aware of these things and we did have another situation where a person did inherit a property and then didn't know that. Then, you know, a few years later they decided to buy a house and he went in to withdraw his KiwiSaver and he couldn't because he was told that in the eyes of the law, he's already a property owner. So this is where you know if you are finding yourself in this position, definitely consult a lawyer, get your lawyer involved and, yeah, make sure that the property titles are arranged in a way that will allow you in the future to get your KiwiSaver out yes to benefit from getting your KiwiSaver.
Speaker 1:Very important and now that we're on the subject of lawyers, we are going to cover the role of the lawyers, actually when it comes to property convincing as well. So you guys are getting two for the price of one here today. Lawyers yes, koenj. What's the role of the solicitor?
Speaker 2:Yeah, so lawyers play quite an important part of your home buying journey. So they will go through the sales and purchase agreement, check over the conditions and things of that. They do all the legal side for you. They also execute the KiwiSaver withdrawal as well for you. So they'll help you complete the forms and things like that. When your KiwiSaver is ready to be withdrawn or on settlement, the funds actually get paid to your lawyers. You actually don't even see your KiwiSaver funds coming into your account.
Speaker 2:It goes straight to them, then it goes straight to the vendor's lawyers. So, yeah, so the lawyers basically do the mortgage side of things. So they register the mortgage, they register your name on the title. So they do play quite an important role to the journey there.
Speaker 1:And they also make sure that your name is actually registered to a correct property. And, to be honest, part of my suggestion here would be please double check what you're actually getting yourself registered against. There were cases in the past. I remember reading some news articles back in the day about a guy owning a property and he discovered like 30 years later that the property he was owning wasn't even his. He was owning next door.
Speaker 1:Often happens with cross leases. So very, very important to double check your name against the title and again, your solicitor will send you all that information at the end of the transaction. So you've got access to all of that. But, guys, if you've got any questions or comments, please feel free to drop us a line. We'd love to hear from you. We love getting your questions because that inspires us to deliver more information to more people. So you can find us on Facebook, instagram, youtube and TikTok. All you've got to search is just my name, and a lot of information will pop up and share this with people in your life that you think will find it valuable. Thank you, thanks.