Cheap homes become a reality
A new affordable homes project will see 36 new homes built in Auckland on sites previously disregarded by builders who saw the project as too challenging.
The sites, in Pukekohe and Papakura, have been set aside for firsthome owners under the Special Housing Areas legislation, which means the completed houses cannot be sold for more than $578,250.
The properties are only be allowed to be sold to first-home buyers who are New Zealand citizens.
Aspiring first-home owners Natasha King and Matt van der Haast aim to be the first to sign up for a house in the Belmont subdivision. We didn't think we could afford to buy a home, but we realise we can. The couple and their two children have moved out of their Botany Downs rental and are living with King’s father in Pukekohe to save money.
King said: ‘‘We didn’t think we could afford to buy a home, but we realise we can, with the family helping with the deposit.’’
The three-bedroom brick-andtile houses built by GJ Gardner Homes will look similar to other homes in the subdivision, but be on smaller sites of 200 to square metres.
This is the maximum specified under the legislation that says the price cannot be more than 75 per cent of the median price of a house in Auckland as calculated in September 2015.
However, to qualify for firsthome Welcome Home mortgages and KiwiSaver HomeStart grants, the houses need to be under $550,000, which builders don’t believe is possible.
The GJ Gardner Homes Franklin/Papakura franchise has now taken up the challenge and is prepared to build 24 homes in the Belmont subdivision in Pukekohe and 12 in Papakura, but the price will be $578,250. will 260
Managing director Mike O’Meeghan said the company already has a large presence in the Belmont subdivision. ‘‘When the chance to purchase almost all the affordable lots came up, we decided this was an opportunity to see what we could do.’’
But building to the limit was a challenge, said Eddie de Heer, development manager for the project.
‘‘We debated that (limit) long and hard. The reality was we couldn’t make it work at $550,000.’’
Housing Minister Nick Smith is expected to raise the Welcome Home house price and income caps, and KiwiSaver HomeStart grants, in an announcement this month.