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News: FTBs in NZ receive helping hand

Mon, 09 Jul 07

The Government's offer of help for struggling first home buyers in Queenstown is being welcomed by the real estate industry but it says the move won't fix the problem...

The Government is contributing $2 million to help fund a shared home ownership initiative for first home buyers. The scheme will see Housing New Zealand and the Queenstown Lakes Community Trust help first home buyers by taking a percentage share of their property.

The principal of Harcourts in Queenstown says it is great the government recognises the effect of skyrocketing house prices but it will only have a Band-Aid effect. Kelvin Collins says interest rates are the real culprit and the scheme won't solve the long-term problem which is the lack of land for subdivision because of environmental laws, putting
pressure on the price of existing properties.

A step in the right direction

Collins says shared equity won't solve that problem. He says the Government will need to look at the bigger picture but the scheme is a step in the right direction.

Queenstown's mayor says there is plenty of demand for the new shared equity scheme, being trialled by the Queenstown Lakes Community Trust. Clive Geddes says it will give qualifying households a chance to get into the housing market.

Geddes says the region has been looking for ways to help people into home ownership in order to maintain a balanced community. He says there is definitely demand and qualifying household incomes are surprisingly high at between $47,000 and $80,000 which should benefit people in the hospitality trade and those in middle-management.

Geddes says it is the best strategy developed so far.

Source: NZ Herald

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