Qualifying for Kiwibuild ‘affordable home’

Ahead of an announcement expected today Stuff has details on eligibility to buy a Kiwibuild home, optimistically labled ‘affordable’ in Couples earning up to $180k will be able to buy homes

The income test is $120,000 for a sole buyer or $180,000 for a couple. Both citizens and New Zealand residents will be eligible.

The homes will be available to all first-home buyers and most “second-chancers” – usually people who go through a divorce and have lost property. Second-chancers must not have assets exceeding $120,000 in Auckland, $100,000 in most other cities, or $80,000 for the rest of New Zealand.

First-home buyers will not be subject to a financial asset test – they will simply need to be buying a first home.

Housing Minister says this will allow 92% of first home buyers to be eligible. Presumably the other 8% earn too much. And presumably, most of them should be able to buy a house without Government help.

Occupation and resale requirements:

Those who purchase a home will need to live in it for at least three years without selling it, but will be able to rent out spare rooms to flatmates.

Some purchasers will be able to sell the home within three years if special circumstances such as a death or serious illness occur – but they will need to apply for permission from the Government, who will consider each person on a case-by-case basis.

Scoring a Kiwibuild house will be a type of lottery for those who pass eligibility tests.

For the first years of the scheme, the homes will be balloted, meaning every eligible buyer who enters will have an equal chance of buying a home.

As has been widely noted, ‘affordable’ is still a hell of a lot for first home buyers.

Three-bedroom homes in Auckland and Christchurch will cost $650,000 or less, with two-bedroom homes costing $600,000 or less and one-bedroom homes costing $500,000 or less.

All KiwiBuild homes outside of Auckland or Christchurch will cost $500,000 or less.

That’s still a lot of money – and for most wanting a new house it will mean a lot of mortgage, if they can get one.

First, houses will need to be built. Actually no, first sufficient suitable land will need to be found and pass Resource Consent requirements.

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21 Comments

  1. David

     /  July 4, 2018

    650k in Christchurch and an income of 120k would put you in the top 5%, ridiculous level.

    Reply
    • Blazer

       /  July 4, 2018

      well David you say you work to help people onto the property ladder…how much did you sell for on your last project?

      Reply
      • David

         /  July 4, 2018

        376k for a 3 bedroom house on a 500 sqm section which had a brand new kitchen and bathroom as well as being totally renovated from top to bottom and fully insulated to 2 young first home buyers who had some savings and their Kiwisaver and first home buyers grant.
        I have a 240 sqm 4 bedroom house for sale that is 20 years old inn a nice subdivision with all mod cons for 485k. Fully renovated.
        I have a 4 bedroom older house for sale again immaculate for sale for 385k.
        All in Christchurch,s nicer suburbs.

        Reply
        • Blazer

           /  July 4, 2018

          seems pretty reasonable…don’t know that market well.

          Reply
    • Zedd

       /  July 4, 2018

      methinks the $650k was mainly Akld (& Q’town ?) prices, not ChCh ?

      Reply
      • David

         /  July 4, 2018

        I did too Zedd so unless its a mis print its ChCh as well which is just stupid. Brownlee and Smith force the council to release loads of land and prices have been flat for 4 years here.
        I think Twyford needs to be much more focused but I am starting to wonder if he has the smarts.

        Reply
        • Zedd

           /  July 4, 2018

          maybe they just said it is the upper limit for all of the houses ?

          Reply
          • Gezza

             /  July 4, 2018

            The way I read what’s cited in PG’s post, they ARE upper limits. So anyone getting in on the Kiwibuild scheme has to build to those limits.

            Reply
            • Kitty Catkin

               /  July 4, 2018

              Why does someone on an income of $3600 a WEEK need to be subbed into a house by the rest of us to whom that seems like Monopoly money ?

              Haven’t these people heard of buying readymade houses that are already for sale ?

  2. Gezza

     /  July 4, 2018

    Three-bedroom homes in Auckland and Christchurch will cost $650,000 or less, with two-bedroom homes costing $600,000 or less and one-bedroom homes costing $500,000 or less.

    All KiwiBuild homes outside of Auckland or Christchurch will cost $500,000 or less.

    Don’t forget, some might be heaps cheaper. 👍🏼

    And some people on high incomes 65 or older who don’t need it will opt out of receiving the Winter Energy Payment too. But maybe not Parliamentarians.

    Reply
    • Gezza

       /  July 4, 2018

      Who’s got it in for cheaper Kiwibuild houses & rich people except Parliamentarians opting out of the Winter Energy Payment ! 😡

      Reply
  3. sorethumb

     /  July 4, 2018

    If you go back to the early 2000’s it was immigration putting up house prices. Then came hugh Pavletich and Huston Huston Huston. Gradually it became part of the “lexicon” (NBR – first time I had heard that word). There is also talk of interest rates worldwide. I get the feeling that the truth only comes out when those with the capability to know the answers are objective. In other words there are none so blind as they who will not see?

    It seems to me that the ground has shifted under our feet: we have a larger population but are on average producing less as a land based economy?

    Reply
  4. Trevors_elbow

     /  July 4, 2018

    120k? That is asking people to game the system to get under that generous cut off…

    This is getting ridiculous. If you’re on 120k and can’t get in the market then your an idiot and spend on bs holidays and dining out etc. You have a plan and minimize spending you will have a deposit very quickly on 120k… especially if your leverage Kiwisaver contributions by going with max contribution…

    Reply
  5. Blazer

     /  July 4, 2018

    I’m starting to think the best solution is just to crash the whole market.
    Those who bought a home to live in will be O.K.

    Reply
  1. Qualifying for Kiwibuild ‘affordable home’ — Your NZ – NZ Conservative Coalition

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