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Colin Hill | 31 Oct 2018 | First Homes

Is a KiwiBuild Home Right For You?

Colin Hill | 31 Oct 2018 | First Homes

Is a KiwiBuild Home Right For You?

Is a KiwiBuild Home Right For You?

Last week saw Jacinda Ardern open the front doors and welcome 18 families into the first set of completed KiwiBuild homes. This was a massive day for Kiwi first time home buyers and an even bigger accomplishment for the government.

With first-time buyers finding it increasingly difficult to step onto the property ladder, especially in Auckland, the KiwiBuild initiative is the government’s ambitious plan to give them a helping hand.

The aim is to build 100,000 new and affordable homes across the country, with 50,000 being in Auckland. The hope is, the KiwiBuild scheme will help Kiwi’s achieve their own slice of the New Zealand dream. Let us walk you through some of the particulars regarding how to buy a KiwiBuild home.

Where are they being built?

There are a number of different regions around New Zealand that have been earmarked for the KiwiBuild initiative. The main focus is to develop areas where housing prices are rising sharply which is making it hard for potential buyers to enter the market.

The initial focus will be on the Wellington, Hamilton, Napier-Hastings, Queenstown-Lakes District, Tauranga, Whangarei District and Nelson-Tasman regions. As well as our largest and most competitive market of Auckland.

What are the options available?

There are three different housing sizes that are available through the initiative. Firstly, one bedroom houses, studios or one bedroom plus a study. Secondly, two bedroom houses. And, lastly, three or more bedrooms.

How much do KiwiBuld homes cost?

While the individual price of houses or land will be determined by the developers, the government has set upper-limits on what they can charge.

In Auckland and the Queenstown-Lakes district, the limit varies depending on the size of the house you are interested in. With smaller houses or studios costing up too $500,000, two bedroom homes costing $600,000 and three bedrooms plus costing $650,000.

However, outside of these two regions, the cost of KiwiBuild houses, regardless of size, will cost you no more than $500,000.

Are you eligible?

The main focus of the KiwiBuild initiative is to give first-time buyers the best chances possible to enter the property market. So to ensure this goal is met and more Kiwi’s are able to own their first house, the government has set some strict guidelines.

In order to be eligible, you must meet the following criteria: firstly, you must be a first-time buyer. Secondly, either a New Zealand citizen or permanent resident. Thirdly, if you are single, your income must not exceed $120k and for couples no more than $180k per year. Lastly, you must intend to make the house your own and live in it for at least three years.

How do I apply?

The process for receiving the keys to your very own KiwiBuild house is a fairly lengthy and detailed one. However, in it’s simplest form, there are four key steps.

  • Check you are eligible. The first step to owning a KiwiBuild home is to ensure you are eligible. We have outlined what criteria you must meet above. If you would like to discuss your eligibility further, make sure you get in touch today and we can help you understand your status better.
  • Apply to pre-qualify for KiwiBuild. In order to enter the ballot for a home, you must gain pre-approval. It is important to note, this is different from entering the ballot but to pre-qualify you must meet all of the eligibility criteria as well as provide all the relevant documentation; including proof of residency and income.
  • Enter the ballot for the development you desire. Once your pre-qualification has been approved, you are able to enter the ballot. The way the government decides who gets priority for a KiwiBuild development is through a ballot system. Each development will have their own ballot which you are able to enter as many times as you like.
  • Win the ballot. The applicants who are lucky enough to be drawn out of the ballet will get the first opportunity to buy in the development. Once you have been informed of your status, you’ll then be put in contact with the developer to finalise the Sale and Purchase agreement. As part of this, you’ll be required to sign a Deed of Covenant, which guarantees you’ll live in the house for at least three years.

The governments KiwiBuild initiative is a hugely ambitious program but one that has the potential to change the lives of thousands of Kiwis. With housing markets around the country continuing to strengthen and competition for limited houses growing, we really hope this helps a number of first-time buyers achieve their dream of owning a house.

If you would like to discuss the KiwiBuild process and get advance on whether you qualify or even getting the ball rolling, get in touch today.

 

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