Community Housing Aotearoa, the Salvation Army, the Housing Foundation and Habitat for Humanity are working together on the KiwiBuy campaign to persuade the government to put more resources into shared ownership and progressive home ownership products that can help more kiwis own an affordable home.
Using shared ownership and progressive home ownership models, community-based housing provides can help people on lower incomes get into home ownership.
Shared Ownership: Under the ‘Affordable Equity’ model a household purchases a share of the property at a price point they can afford (subject to criteria and conditions). The remainder is owned by our community housing providers and both parties will be represented on the property title. The household organises their own mortgage (with support from KiwiBuy), the advantage being that under this arrangement, they will have a smaller mortgage than they will ordinarily require to purchase the property at market value.
Progressive Home Ownership: Under the ‘Affordable Rental’ model you occupy a new home built by one of our providers, paying the equivalent of a fair market rent and determined by what is affordable based on your total gross household income (before tax)
These models are already working well in small scale but with financial help from government, many, many more people could benefit from this approach to home ownership.