As of last week, New Zealanders can now register their interest in purchasing a KiwiBuild home; an affordable, quality starter home for first home buyers.
The KiwiBuild programme was introduced by the Government to address the issue of declining home ownership in New Zealand, which is currently at its lowest level in over 60 years. The Government plans to build 100,000 KiwiBuild homes over the next 10 years, with 1,000 due for completion by 1 July 2019. The homes will then be sold to eligible first home buyers at fixed prices.
The purchase prices for KiwiBuild homes have been capped at between $500,000 - $650,000 (depending on the number of bedrooms) for Auckland and Queenstown, and $500,000 for the rest of the country. These price caps are not targets; MBIE has indicated that KiwiBuild homes will be delivered below these price points wherever possible. We note that the current KiwiSaver HomeStart Grant house price cap for a new build property in Dunedin is $450,000, and $550,000 in Queenstown.
The Government announced this week that the vast majority of these homes (95%) will be built in the North Island, with 60% intended for Auckland. Dunedin will get 851 homes, and Queenstown 2,229 homes.
The programme is aimed only at helping first home buyers so there are strict eligibility requirements to purchase a KiwiBuild home. The eligibility requirements can be found on the Ministry of Business, Innovation & Employment’s (MBIE) website, they include:
If you want to apply for a KiwiBuild home, you should begin by registering your interest on MBIE’s website. MBIE will then contact you about the pre-qualification process as homes become available. If you qualify as an eligible potential buyer, you will be entered into a ballot for KiwiBuild homes that fit your requirements.
If you are a potential first-home buyer and would like information about home ownership, please contact a member of our Property Law team.
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