Newland: Consider shared equity scheme
New Zealand should think about following Britain’s lead and introducing shared equity loans for new homes, commentator Olly Newland says.
Thursday, March 21st 2013, 12:00AM
by The Landlord
Britain is to commit GBP3.5 billion over the next three years for shared equity loans on new homes worth up to GBP600,000, to allow buyers to purchase them with 5% deposit.
The Government will put up a fifth of the cost of the build and the loan will be interest-free for five years.
The scheme is open to all buyers and the Government is also guaranteeing mortgages from next year for three years, to help people buy with smaller deposits.
Newland described it as a plan that would help both the building industry and struggling first-home buyers.
“Something like this would do wonders for first-home buyers back here, and it is to be recommended to the powers that be as a worthwhile project to solve the ‘crisis’ we have in some areas of the market.”
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