KiwiBuild homes plan for Wanaka

Housing Minister Phil Twyford has announced plans for 211 KiwiBuild homes to be built in Wanaka, with 10 ready by March next year.

The 211 homes will all be a part of the Northlake development, with prices for the first 10 ranging from $565,000 to $650,000.

All 211 are planned to be completed within the next two years.

These are the first announced KiwiBuild homes in the South Island, and indeed the first outside of Auckland.

The Government’s KiwiBuild policy aims to build 100,000 affordable homes in the next decade, with 1000 ready by July 2019. Currently just 18 are completed in south Auckland.

Affordable is defined differently depending on area. In Auckland and Queenstown the price cap is set at $650,000 for a three-bedroom home and $600,000 for a two-bedroom home, while in other areas the cap is $500,000.

Wanaka sits within the Queenstown Lakes District so is subject to the same price caps as Queenstown. The first 10 homes will be completed by March and include six three-bedroom standalone homes and four two-bedroom homes. A ballot for these homes opens on October 8.

Even with the higher price cap KiwiBuilds are likely to be quite a deal: other three-bedroom homes in Northlake have gone on sale for up to $899,000.

‘‘For first home buyers who have been locked out of the market, KiwiBuild is providing the chance to buy an affordable modest, starter home in one of the most beautiful parts of New Zealand,’’ Twyford said.

He also pointed to the fact the Government have raised the cap of another affordability scheme – Welcome Home Loans with 10 per cent deposits – in the area. ‘‘In August, we raised the HomeStart and Welcome Home Loan price caps for Queenstown Lakes to $650,000 for new builds, bringing them in line with KiwiBuild. Our Government is taking a comprehensive approach to assisting firsthome buyers in one of our least affordable areas,’’ Twyford said.

First home-buyers and some ‘‘secondchancers’’ are eligible to enter the ballot for KiwiBuild homes.

Prospective buyers must have proof of financing, earn under $180,000 for a couple or $120,000 for an individual, and be willing to sign a statutory declaration saying they will not sell or rent out their home for at least three years.