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

Open Source // Open Society - Full Coverage

Gordon Campbell:
On The Reserve Bank And Auckland Housing

The ‘crisis – what crisis?’ response by the government to the Auckland housing price bubble is no longer acceptable.

So says Reserve Bank governor Grant Spencer – who used unusually frank language in his speech and subsequent interviews yesterday to call for a capital gains tax, and to generally chastise central and local government for their inaction on a threat to the country’s economic health and financial stability.

That threat has been real for some time. The housing price bubble has already created a currency bubble... Undaunted, the government keeps calling this situation a success story. More>>

 

PARLIAMENT TODAY:

Bangladesh: GCSB Dragging NZ Into Human Rights Abuses

The New Zealand government should stop providing intelligence assistance to Bangladeshi security agencies that are known to systematically engage in human rights abuses, said the Green Party today. More>>

ALSO:

Troops Heading To Iraq: Government Must Come Clean On Deployment

New Zealanders deserve more than to hear about their troops’ deployment overseas from Australian media, Opposition Leader Andrew Little says. “News from Australia that Kiwi troops are on their way to Iraq this week is another example of the culture of secrecy and unknown protections around the deployment.” More>>

ALSO:

Image: Strikers And Protestors Join Outside McDonald's

A group of protestors took to McDonald’s Manners St today as a part of the international fast food workers day of action to end zero hour contracts. More>>

ALSO:

Greens: Special Education Funds Not Spent

More than $32 million of funding for children with special needs has not been spent by the Government, despite families of children with special needs complaining for years that they’ve been denied the support they deserve. More>>

ALSO:

John Key: Pre-Budget Speech To Business NZ

So this Government will remain relentlessly focused on improving the competitiveness of our economy... We will continue to give businesses a platform to invest, grow and create jobs in the knowledge they will be backed by a clear and consistent government policy programme. More>>

ALSO:

Multimedia: Andrew Little’s Response To John Key’s Pre-Budget Address

Labour Party leader Andrew Little spoke today on John Key’s pre-budget address this afternoon in Wellington. Little said National has had seven years to achieve a surplus and Kiwis have “fufilled their end of the bargain.” More>>

Surplus Baggage: Key Backs Off ‘Artificial Target’

John Key’s attempt to redefine his cornerstone promise of two election campaigns as an artificial target suggests his other promises are works of fiction, says Labour’s Finance spokesperson Grant Robertson. More>>

ALSO:

Gordon Campbell: On UE Pass Rates And University Dropout Rates

Houston, there is clearly a problem with (a) the plunge in pass rates for University Entrance qualifications, which has been especially steep among Maori students and also a problem with (b) the failure rates for Maori students among those who reach university... Unfortunately the two problems seem related. More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
More RSS  RSS
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news