NZ Housing Minister, Nick Smith, has unveiled two new plans to help first-time buyers get into the property market.
The first scheme, announced earlier last week, comes in the form of a vacant state house. The initiative, known as FirstHome, will help modest income earners buy their first home by giving them a 10 per cent deposit, up to $20,000, to purchase vacant state houses no longer needed by Housing New Zealand.
To be eligible applicants must have an income equal to, or less than, the national household average (one person $53,000, two or more persons $80,600) and be committed to owning and living in the house for a minimum of three years.
In addition, buyers will still be entitled to other assistance such as KiwiSaver and Welcome Home Loan subsidies if they are eligible.
The only catch is that the properties are not located in high demand areas including Wellington, Auckland and Christchurch, but in regional New Zealand.
“The first 41 of these homes will be ready for sale on 7 October and consist of properties from Otorohanga to Invercargill,” said Dr Smith in his announcement.
“They have an average market valuation of $120,000. 100 properties will be available in the first year, with about 400 available for sale over the next three years.”
The second housing scheme announced last Thursday was a new development in South Auckland.
A community consortium, led by the Tamaki Collective, will build 282 houses on the 16-hectare subdivision of vacant Government land in Weymouth as the first development under the Government and Auckland Council’s Housing Accord.
The $102 million development, to which the Government is contributing $29 million, is expected to help 113 families into their first home.
Dr Smith says the consortium has committed to sell the homes for between $325,000 and $475,000, including some through a rent-to-buy scheme.
The remaining 169 homes will be made available for social housing and for people to rent.
Dr Smith says the development will house 1,250 people in mostly smaller 2 bedroom units and some 4 or 5 bedroom homes.
With branches strategically placed throughout New Zealand, Grace Removals is easily able to assist first-home buyers wanting to take up these schemes. When it comes to removals, we are a one-stop shop, providing everything from packing and unpacking to vehicle and pet relocation. Give Grace a call to see how we can help you achieve your housing dream.