Labour would introduce an equity share scheme to help first home buyers if re-elected for a third term, Housing Minister Steve Maharey said today.
Tuesday, August 23rd 2005, 8:23AM
by The Landlord
Under the scheme, the Government would provide a portion of the purchase price to help low and middle income earners who found it difficult to save for a deposit and who might not have sufficient income to service a full commercial mortgage.
Mr Maharey said Housing New Zealand would take a stake in the property, meaning a first home would become more affordable for low income families.
The purchasers would have to repay Housing New Zealand's share if they sold or moved out of the property.
Mr Maharey said equity share programmes worked best where there was high growth in property prices and strong demand for housing, such as in Auckland.
A similar scheme in the United Kingdom had proved successful in helping families into their own home, he said.
