Queenstown homebuyers get Government help

Workers in Queenstown will get Government help to buy houses under a new scheme.

The Government is putting $2 million into a shared home ownership scheme for workers in Queenstown, Housing Minister Chris Carter said today.

Mr Carter said the scheme being trialled by the Queenstown Lakes Community Housing Trust was similar to the type of shared equity scheme the Government is considering piloting nationally next year.

"By providing a suspensory loan of $2 million to the trust, the Government is able to help Queenstown tackle its difficulties with housing key workers and also explore how successfully a shared ownership programme works in one of New Zealand's highest priced housing markets," Mr Carter said.

"This scheme is designed to help committed residents who are fully employed in the district into home ownership."

The Queenstown scheme will involve Housing New Zealand and the trust helping eligible households to buy first homes by taking a share in the house at no cost to the household.

The share will typically be about 30 percent of the purchase price, but could vary between 20 percent and 40 percent.

The home buyer will obtain a regular mortgage for the remaining part of the purchase price.

The trust will then operate as direct co-owner and if the property is sold the trust and Housing New Zealand will take their share.

Profits will be put into more affordable housing in the district.

The total pool available for the pilot will be $4 million and it is expected to get underway within the next three months.

Up to 35 households could be helped to buy homes.

Mr Carter said the aim was to provide affordable, entry level home ownership.

Only home buyers with an annual household income of up to $80,000 will be able to use the scheme and they will not be able to buy homes for much more than $500,000 -- the median house price in the district.

Mr Carter said shared ownership was a new concept in New Zealand and it was important to carefully test it.

- NZPA