This announcement will effect the NZ property market. Nz is aboutt to have an ellection. Labour are the existing Government.
Labour Offers Help To First-Home-Owners
22/08/2005 12:47 PM
NewstalkZB
Labour has unveiled a new scheme which would see the Government pay up to 50 percent of the cost of a couple’s first home.The Equity Share Scheme mirrors a UK model and means first home buyers can apply for Housing New Zealand to take an equity stake in their property.
Housing Minister Steve Maharey says the scheme means buyers can take a smaller, more affordable loan to cover the rest of the purchase price.
He is unwilling to put a dollar figure on it and says it will vary for different couples but puts the limit at a 50 percent share.
Eligibility is still to be worked out but applicants would have to be registered with the new KiwiSaver scheme.
regards westan
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Properties in the USA 15-25% returns- email to join our database [email protected]If Labour is reelected, what do others see as the implications of this ?
I think it will send more first home buyers into the market and push the price of the market up. Especially at the lower end of the market.
We saw this happen in Australia when the government introduced the $7000 first home owners grant. Within a few months the market in many areas i was active in had risen about $7000.
regards westan
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check it out !
Properties in the USA 15-25% returns- email to join our database [email protected]Hi Westan,
Is this the one that is specific to state housing clients or is it another deal altogether.
cheers
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what is the kiwisaver scheme?
https://www.propertyinvesting.com/forum/topic/17587.html?SearchTerms=kiwi,saver
Election time at the moment so there are alot of new policy ideas.
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Project management also available – finding solutions for problem properties!
Hi westan
Is it 50% or 5% the Government may assist with?
I can’t see any Government in NZ contribute 50% of the cost of house.
Regards
Hi Guys
Tracked down a newspaper item about the Labour Party’s housing scheme:
Labour vows first-home deposit help
23 August 2005
By REBECCA PALMERLabour is promising to introduce an equity share scheme in which the government could provide first-home buyers with up to half the deposit needed to buy a house.
Housing Minister Steve Maharey said yesterday that the scheme would help low and middle-income people who found it difficult to save for a deposit.
But details are still sketchy. Costings have not yet been done for the scheme and eligibility is yet to be decided on.
However, applicants would have to be registered with the new KiwiSaver scheme, a voluntary work-based savings scheme due to start in 2007.
Mr Maharey said that under the scheme Housing New Zealand would take an equity stake in a house and buyers would be required to repay Housing NZ’s share if they sold or moved out of the property.
The size of the government’s equity contribution has yet to be decided but a spokesman for Mr Maharey said it could be up to 50 per cent of the deposit.
The scheme would not be limited to those living in state houses.
National housing spokesman David Carter said Labour had thrown the policy together in desperation.
“Where is the information? Where are the facts about who qualifies, how much will be loaned or how much it will cost?”
Labour’s scheme sounded “very similar” to the Home Buy scheme of the last National government, which allowed tenants to buy the state houses they were living in with the aid of a suspensory loan worth up to $15,000.
National announced a month ago that it would reintroduce the Home Buy scheme if elected, Mr Carter said.
Mr Maharey said Labour’s scheme would build on other initiatives announced in the Budget, including giving couples who were first-home buyers and members of the KiwiSaver scheme a one-off deposit subsidy of $10,000.
He also announced yesterday that Labour would increase the number of low-interest grants and loans available through the Housing Innovation Fund.
News source:
http://www.stuff.co.nz/stuff/0,2106,3385986a11,00.htmlIt says the Government may contribute up to 50% of the deposit.
Regards
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