Buying a house in your 20s is a question that’s top of mind for many young Kiwis. In this episode, we unpack why so many are considering it, the pros and cons, and what it could mean for your life and finances.
Owning a home is seen as a major milestone in New Zealand, even though the average first home buyer is 36. Despite this, many under 25s are entering the market, driven by KiwiSaver incentives and low deposit first home loans.
In contrast, places like Europe view long-term renting as normal, with far less pressure to buy.
When deciding whether you buy a house in your 20s, the episode outlined both sides.
Pros:
Build equity earlier and benefit from long-term capital gains.
Lock in housing costs versus rising rents.
Access incentives like first home loans before they disappear.
Cons:
Less lifestyle flexibility to travel, move cities, or change careers.
Large responsibility and debt at a young age.
Decisions may not align with future life goals or relationships.
Makayla and Jess discussed whether buying a house in your 20s is worth it if it doesn’t align with what truly makes you happy. They pointed out that while property can build wealth, it might also limit your freedom to travel, gain new experiences, or grow personally. As they put it, your happiness isn’t about how much money you have – it’s about what you do with it.
If you’re unsure about buying a house in your 20s, there are other options:
Grow your KiwiSaver by choosing the right risk level for your timeframe.
Invest for the long term, avoiding risky short-term plays if you’ll need funds soon.
Focus on income growth through upskilling, career pivots, or pay rises to accelerate future goals.
Travel and build experiences while budgeting wisely to maintain your savings momentum.
The average Kiwi first home buyer is 36, but many under 25s are buying.
Recent KiwiSaver changes support saving younger.
Buying young builds equity but limits flexibility and increases responsibility.
Income growth and investing early are strong alternatives.
Buying property is a financial choice, but happiness should guide your decisions.
Make sure your KiwiSaver is in the right fund for your first home goals – speak to Lighthouse Financial for advice today.
Ever wanted your own financial adviser? James is picking one listener to coach for a whole year – apply now and you might just star on the podcast too. Apply here!
If you’d like to learn more, check out these other episodes below.
Disclaimer:
The information in this article is general information only, is provided free of charge and does not constitute professional advice. We try to keep the information up to date. However, to the fullest extent permitted by law, we disclaim all warranties, express or implied, in relation to this article – including (without limitation) warranties as to accuracy, completeness and fitness for any particular purpose. Please seek independent advice before acting on any information in this article.
