Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


Mike Pero and the HomeStart package

POSITIVE OUTLOOK FOR FIRST TIME BUYERS

25 August, 2014

Mike Pero believes the proposed National housing plan would be positive for the housing market.

Over the weekend, National announced their $218 million HomeStart package which aims to help an estimated 90,000 first home buyers and young families into their own homes.

“I believe it’s a very positive outlook for homeowners and for the country’s housing problem. It’s a hand up rather than a hand out and I believe it fits well with the state of the nation and for thousands of people considering home ownership over the next few years” says Pero.

The HomeStart scheme would replace the Kiwisaver First Home Subsidy. It would assist those buying a new home by increasing support and house price limits. It will also allow first home buyers to withdraw a larger sum from their Kiwisaver savings (however they wouldn’t be able to withdraw their $1000 kick-start).

“In my experience it’s not the debt servicing that’s the issue for new home buyers, it’s getting the deposit together that’s the tricky bit so this seems to me to be a good start” said Pero.

Currently, first home buyers are eligible for a grant of $3,000 after three years in KiwiSaver, $4,000 after four years and $5,000 after five years. Under KiwiSaver HomeStart, this grant will double to $6000 after three years, $8,000 after four years and $10,000 after five years for the purchase of a newly-built home.

“On an example of a $550,000 home with a 10% deposit the repayments might be as low as $700 per week. If a couple of Aucklanders were renting they’ll be paying close to that in rent and if they could save, their savings would hardly keep up with inflation. My philosophy has always been buy now, pay later and you should always aim to get into a home as soon as you can. The earlier the better.”

The house price limits for KiwiSaver HomeStart and Welcome Home Loans will be $550,000 in Auckland, $450,000 in Wellington, Christchurch and other similarly-priced housing markets, and $350,000 for the rest of the country.

The KiwiSaver First Home Withdrawal is limited to members buying a first home, who have been contributing for a minimum of three years. The KiwiSaver HomeStart Grant and Welcome Home Loans have additional criteria of people having an income below $80,000 for an individual and $120,000 for a couple, and the house being purchased must be below the regional house price limits.

If National is re-elected, the changes would come into effect in April 2015.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Also, Loan Interest: Productivity Commission On Tertiary Education

Key recommendations include better quality control; making it easier for students to transfer between courses; abolishing University Entrance; enabling tertiary institutions to own and control their assets; making it easier for new providers to enter the system; and facilitating more and faster innovation by tertiary education providers... More>>

ALSO:

Higher Payments: Wellington Regional Council Becomes A Living Wage Employer

Councillor Sue Kedgley said she was delighted that the Wellington Regional Council unanimously adopted her motion to become a Living Wage employer, making it the first regional council in New Zealand to do so. More>>

ALSO:

Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>

ALSO:

Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>

ALSO:

With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>

ALSO:

Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news