First Ki­wiBuild buy­ers to pay $100,000 be­low mar­ket value

Bay of Plenty Times - - NATION -

New Zealand’s first Ki­wiBuild buy­ers will be se­lected in the next week and they will be pay­ing $100,000 less than they would on the open mar­ket, new data shows.

Bal­lot en­tries for the first 18 homes — in Pa­pakura in South Auck­land — closed at mid­night with the win­ners to then be drawn at ran­dom and no­ti­fied by email in the week af­ter­wards.

As of yes­ter­day af­ter­noon, 85 first-home buy­ers were in com­pe­ti­tion for the homes.

Ki­wiBuild is a Labour ini­tia­tive which prom­ises to build 100,000 af­ford­able houses for Kiwi firsthome buy­ers in the next decade. El­i­gi­ble buy­ers en­ter the bal­lot for a home and wait to see if their name is drawn.

The homes up for grabs in­clude 12 three-bed­room houses sell­ing for $579,000 and six four-bed­room houses priced at $649,000 — prices that ap­pear to be a steal.

That’s be­cause the homes are sell­ing for at least $100,000 less than what they might fetch on the open mar­ket, ac­cord­ing to “ball park” es­ti­mates by prop­erty PHOTO / FILE an­a­lysts CoreLogic. The an­a­lysts found “sim­i­lar”

Bal­lot en­tries for the first 18 homes has closed

12 three-bed­room houses sell­ing for $579,000

6 four-bed­room houses priced at $649,000

100,000 af­ford­able houses planned for next decade three-bed­room homes in Pa­pakura — built af­ter the year 2000 — were cur­rently worth a me­dian price of $684,500, while fourbed­room homes were worth a me­dian $769,000.

It wasn’t hard to imag­ine Auck­land first-home buy­ers were there­fore “re­ally jump­ing” at the chance to buy Ki­wiBuild homes with three-or-more bed­rooms, said se­nior re­search an­a­lyst Kelvin David­son.

The sav­ings come as some pun­dits have crit­i­cised the Ki­wiBuild build­ing pro­gramme for be­ing a case of Gov­ern­ment spon­sored lotto in which only a se­lect group of first-home buy­ers get the chance to ben­e­fit.

Ul­ti­mately, the Gov­ern­ment hopes to over­come some of this by build­ing 100,000 Ki­wiBuild homes over the next decade with 50,000 of those in Auck­land.

But so far sup­ply is lim­ited. In ad­di­tion to the Pa­pakura homes, a fur­ther 25 Ki­wiBuild houses are for sale in One­hunga where bal­lot en­tries close on Oc­to­ber 15.

A sep­a­rate bal­lot for 10 homes in Wanaka, near Queen­stown, opens on Mon­day.

Cou­ples earn­ing up to $180,000 and sin­gles earn­ing up to $120,000 were also el­i­gi­ble to en­ter the bal­lot for the homes with the suc­cess­ful buy­ers be­ing not al­lowed to sell the homes for at least three years — a mea­sure de­signed to stop in­vestors flick­ing the homes on for quick profit.

Hous­ing Min­is­ter Phil Twyford ear­lier de­fended the de­ci­sion to al­low first-home buy­ers with higher in­comes to ap­ply, say­ing the ran­dom na­ture of the bal­lot meant the homes would be avail­able to richer and poorer fam­i­lies alike.

The sale of the first Ki­wiBuild homes also comes as more firsthome buy­ers have re­cently been find­ing their way back into the Auck­land prop­erty mar­ket.

One in ev­ery four houses sold in New Zealand in Au­gust went to a first-time buyer — a level not seen since prior to the Global Fi­nan­cial Cri­sis in 2006/07, ac­cord­ing to CoreLogic.

The an­a­lysts found Auck­land first-home buy­ers pur­chas­ing this year had paid a me­dian price of $699,000 for their homes.

When bro­ken down into homes of dif­fer­ent sizes, the buy­ers paid a me­dian of $740,000 for three­bed­room Auck­land homes, $642,000 for two bed­rooms and $515,000 for one bed­room, the data showed.

It meant buy­ers were will­ing to pay prices well above the max­i­mum $500,000 to $650,000 price caps the Gov­ern­ment has set for sim­i­lar sized Ki­wiBuild houses in Auck­land. Tur­tle res­cued in city The Dunedin SPCA has an un­usual refugee look­ing for a new home. Myr­tle the ter­rapin — a small fresh­wa­ter tur­tle found at pet stores — had to be saved re­cently from a dried-up wa­ter­way. SPCA spokesper­son Jessie Gilchrist says they don’t have many ter­rap­ins pass through the door. Gilchrist says a lot of peo­ple think ter­rap­ins are low-main­te­nance pets, when they need spe­cial care. Con­ven­tion cen­tre re­think The Welling­ton Cham­ber of Com­merce is ap­plaud­ing Welling­ton Coun­cil’s move to reeval­u­ate the busi­ness case for the city s pro­posed con­ven­tion cen­tre. Chief ex­ec­u­tive John Milford says the con­cept un­veiled three years ago no longer in­volves Sir Peter Jack­son and a joint movie mu­seum. He says the cham­ber sup­ports the con­ven­tion cen­tre but only on the ba­sis it pro­vides an eco­nomic re­turn to the re­gion. Milford says putting to­gether a busi­ness case based on the new con­cept al­lows for an in­formed de­ci­sion.

Hous­ing Min­is­ter Phil Twyford is aim­ing to have 100,000 Ki­wiBuild homes con­structed over the next decade.

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