Govt improving housing affordability

The government is making it easier for first home buyers and low-income households to get onto the property ladder, with a new scheme which allows for the purchase or building of a property but defers payment on the land.

Monday, October 11th 2010, 2:00PM 2 Comments

by The Landlord

The Gateway Housing Assistance programme, launched today, allows purchasers to build or buy a property but defer payment on the land for up to 10 years.

"This 10-year period allows people on lower incomes to concentrate on designing and building, or buying their homes before they assume the additional burden of paying for the land," Housing Minister Phil Heatley says.

"It is important the government provides opportunities for people to move into home ownership."

Community housing organisations are being targeted for the scheme, as they will be able to develop the land and use the favourable capital and interest repayment terms to build more affordable housing.

So far 30 suitable parcels of Crown or Housing New Zealand land have been identified and made available for the scheme.

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Comments from our readers

On 14 October 2010 at 7:55 am Liz Tento Wisdom said:

Are we allowed to know where the 30 pacels of Crown land are so we can inform prospective buyers ?

On 14 October 2010 at 9:04 am Geoff said:

Good Concept.

Now if this can be opened up to middle class NZ who have the biggest need here, and back it up with more Govt owned land, we could see big growth in the housing market.

Problem is the cost of building a house is the same for everyone, & if you are on a low income & this program targets those in low income areas, they will struggle to buy the land in 10 years, especially with a flat market and little capital growth.

In 10 years middle class NZ would likely be in a position to buy the land, or at least pay rent on a ground lease as another option?

Govt improving housing affordability

The government is making it easier for first home buyers and low-income households to get onto the property ladder, with a new scheme which allows for the purchase or building of a property but defers payment on the land.

Monday, October 11th 2010, 2:00PM 2 Comments

Comments from our readers

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