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Home buyers to get equity help from Govt
The Government has confirmed plans to unveil a shared equity scheme to help people buy their first homes.
Housing Minister Chris Carter said tonight it would be a way to provide direct financial assistance to buyers faced with prices which would otherwise stop them getting into the housing market.
"You would have partial ownership and share the results of any increase in value," he said on TV3 News.
"It's a new concept for New Zealand, we're not sure how it will work, but it will only work if we make more affordable homes available."
TV3 said a pilot scheme was likely to start in Auckland next year which could involve the Government paying for a 25 per cent or 30 per cent stake in a house.
That would effectively reduce the purchase price of a $400,000 house to about $300,000.
If the house was sold, the Government would take back its percentage share.
Finance Minister Michael Cullen said last month the Government was going to unveil a shared equity scheme.
It is also one of the schemes being considered by a parliamentary select committee which is investigating the causes of the housing boom and is looking for ways to help people buy homes.
Home buyers to get equity help from Govt
The Government has confirmed plans to unveil a shared equity scheme to help people buy their first homes.
Housing Minister Chris Carter said tonight it would be a way to provide direct financial assistance to buyers faced with prices which would otherwise stop them getting into the housing market.
"You would have partial ownership and share the results of any increase in value," he said on TV3 News.
"It's a new concept for New Zealand, we're not sure how it will work, but it will only work if we make more affordable homes available."
TV3 said a pilot scheme was likely to start in Auckland next year which could involve the Government paying for a 25 per cent or 30 per cent stake in a house.
That would effectively reduce the purchase price of a $400,000 house to about $300,000.
If the house was sold, the Government would take back its percentage share.
Finance Minister Michael Cullen said last month the Government was going to unveil a shared equity scheme.
It is also one of the schemes being considered by a parliamentary select committee which is investigating the causes of the housing boom and is looking for ways to help people buy homes.
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