Rent-to-buy programmes could help 10,000 Kiwis enter the housing market in the next decade, the Green Party believes.
Co-leader Metiria Turei says their latest housing policy, launched in Rotorua on Saturday, is about giving New Zealanders a shot when the odds are stacked against them.
“Our progressive ownership model will help to make the home ownership dream a reality for people who are locked out of the housing market right now because they can’t afford a deposit or a normal commercial mortgage,” she said.
The policy would see 10,000 homes made available over the next 10 years in exchange for weekly payments of no more than 30 percent of the buyer’s income.
Costing documents show the cost could start as low as $300 a week over 29 years, with the weekly payment rising in line with inflation.
The policy also seeks to create 5000 new energy efficient homes available to the community housing sector.
“Community housing providers will provide a deposit or private sector finance to pay for between 30-50 percent of the initial cost of building new, highly energy efficient homes,” the policy says.
It would be up to the Government to fund the remaining amount through Housing New Zealand with providers to buy out that stake with regular payments in line with inflation.
In simple terms, you get a Housing New Zealand house, and instead of paying a puny rent to the taxpayer for the privilege, the Greens propose to keep a tally to see how much rent you paid and they will then give you that as equity in a home that’s owned by you and me.
But wait, there’s more!
Payments shall not exceed more than 30% of your income. So. If you are on a benefit, in a HNZ home, you lose a 3rd of your benefit in exchange of building equity in a home with money that is given to you by the state while you essentially live rent-free in a state-provided home.
Just quietly, I’d love to see Gareth Morgan’s take on that.
– NZN via Newshub