Hi all,
News for today
23 August 2005
By REBECCA PALMER
Labour 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
Cheers
Marc
News for today
23 August 2005
By REBECCA PALMER
Labour 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.
Cheers
Marc
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