KiwiSavers are delaying their first home buying dreams as turmoil on financial markets causes savings to slump.
Jill MacDonald lost $10,000 – or 12 percent of her savings – in the past week, leaving her and her fiance short on funds for a mortgage deposit.
“We have to put a stop to potentially moving forward with our decision to try and buy a house this year,” she told Newshub.
Instead, they will continue renting a one-bedroom home in central Auckland until their savings recover.
Fears over the economic impact of the COVID-19 coronavirus had hammered global markets in March, which higher growth KiwiSaver funds are invested in.
The United States Dow Jones Industrial Average closed in bear market territory on Thursday (NZT), which was a fall of 20 percent from recent highs.
The NZX 50 had wiped six months’ worth of gains in a matter of days. It closed Thursday down almost five percent.
Other keen first home buyers who spoke to Newshub said they would delay property purchases because they had lost KiwiSaver funds or were worried about a recession.
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