Home no-one wanted put into KiwiBuild scheme
A Christchurch house for sale under the Government’s KiwiBuild scheme failed to shift on the private market last year.
The two-bedroom house at 5 Te Rito St in Marshland, developed by Mike Greer Homes, was put on the market off the plans for
$459,000 in June last year.
It was withdrawn from the market in November and then relisted under the KiwiBuild scheme for the same price this month. The house is one of five for sale in Canterbury under the Government’s KiwiBuild scheme, which aims to build 100,000 affordable homes across New Zealand over the next 10 years.
All five homes were completed by Mike Greer Homes months before the Government announced a deal with the company last month to underwrite the construction of 65 KiwiBuild houses in Canterbury.
Two KiwiBuild homes in Chatsworth Ave in Rangiora were given their code of compliance certificates on November
9, while the house at 5 Te Rito St was given a certificate on December 6, and two units in Somerfield were granted their certificates on December 10. The five homes were consented between March and May last year.
A KiwiBuild spokesman said the deal with Mike Greer Homes was being discussed from December 2017 and gave the housebuilder confidence to start construction before a deal was struck. He said the deal was given ministerial sign-off in December.
‘‘Formal negotiations began in July, after the KiwiBuild unit was created.
‘‘Mike Greer Homes have stated that the prospect of a deal allowed them to push ahead with developments while the contract was still being negotiated. Those home were formally moved into the KiwiBuild programme once the deal was agreed.’’
National Party MP Judith Collins questioned Housing Minister Phil Twyford in Parliament this week about why the completed homes were included in the Government’s KiwiBuild programme. Twyford said the KiwiBuild underwrite in Marshland allowed Greer ‘‘to bring forward that development more quickly than it otherwise would’ve happened and include more affordable homes in the development’’. He said KiwiBuild underwrites were granted for four houses while construction was under way. He said for an underwrite to be granted the project had to ‘‘increase affordable supply for KiwiBuild buyers in the KiwiBuild price range’’.
‘‘The threshold can be met in four key ways: by getting a development under way; by bringing forward a development, or the stage of a development that is scheduled for a later time period; or by redesigning part of a development to provide for additional, affordable homes, rather than a smaller number of more expensive homes. All underwrites approved by the ministers meet this test.’’
KiwiBuild homes cannot exceed $650,000 in Auckland and the Queenstown Lakes region, while in other regions the maximum price is $500,000.
Buyers have to keep the homes for three years and earn less than a set income threshold.
They must also be Kiwi citizens and first-time buyers.
A spokesman for KiwiBuild said the underwrite usually meant the Government would have to purchase the home for a discounted price if they were not sold after a certain period of time. He said the time limit was ‘‘commercially confidential’’.