‘Holiday’ for first-home builders
Apartment owners will now be able to cash in on a $5000 rates discount for first-home builders in Wellington.
Wellington Mayor Justin Lester first proposed the initiative during his election campaign, and yesterday announced it would now be extended to cover new apartments as well as houses.
At the time he estimated the plan would cost the council about $500,000 per annum and money already set aside to market Wellington would be re-prioritised to cover the rebate, meaning no new costs would be lumped on ratepayers, he said.
It will include buying a newly built home off the plans, or purchasing an apartment off the plans and will start on July 1.
This will cost $2500 per year per claimant in foregone rates income.
‘‘These new dwellings are adding to the ratepaying base. The rates income derived over the life of the homes will far exceed the two year rates discount.’’
He expected it would be claimed by 80 to 100 homeowners a year, which would represent more than a 10 per cent increase in the number of new buildings being consented a year in the city compared to its historic averages of 700-800.
In the face of a shortage of housing supply, more needed to be done to encourage construction of new homes for Wellington, especially for young families or people looking to get into their first home, he said.
He believed a $5000 ‘‘holiday’’ on rates would be an incentive to add to Wellington’s housing stock.
The policy, and the 750 new social and affordable homes planned for the next decade, would help close the housing gap.
The council would also work with central government on making the process of developing new homes easier through special housing areas, he said.
‘‘We’ll say to people if you want to build your life in Wellington, this is a place where you can own your own home and here’s some help to make it happen.’’
The discount would be available to anyone who has not owned their own home before, and will allow them to claim the first $5000 off their rates from when they own a new home.
Deputy Mayor Paul Eagle, the council’s housing portfolio leader, said the aim was to get more than 1000 new homes a year.
The discount will be introduced as part of the annual plan at the end of March.