Daily Archives: October 21, 2008

Interest Free loan from the Government – Do you qualify?

Nelson is one of the five qualifying regions participating in the “Shared Equity Scheme” launched by the Government mid 2008. The other regions are Auckland, Wellington, Christchurch and Queenstown.

Qualifying Zones

The Shared Equity pilot has been designed for regions where people on modest incomes can’t buy their first homes because prices are too high.

A Shared Equity loan provides first home buyers with an interest-free top-up loan, which they use together with a normal bank home loan, to buy their house. This means they don’t have to borrow the whole amount from the bank and they don’t have to make regular repayments on the loan.

Instead, they repay their Shared Equity loan when they sell the house – the amount they pay depends on how much the home’s value has increased or reduced over the term of the loan. The home buyer still pays all the costs of ownership, such as rates and maintenance.

How it works

In Nelsons case the homes max. value is $240,000 and the max. top-up from the scheme is 10% / $24,000.

For Nelson, the suburbs of Aniseed Hill, Atawhai, Atmore, Bell Island, Best Island, Britannia, Broads, Bronte, Clifton, Enner Glynn, Glenduan, Grampians, Hope, Isel Park, Kirks, Langbein, Maitai, Maitlands, Nayland, Nelson Airport, Ngawhatu, Port Nelson, Ranzau, Richmond East, Richmond West, Saxton, Saxton Island, Tahuna Hills, Tahunanui, The Brook, The Wood, Toi Toi, and Trafalgar all qualify.

Do you qualify? Check this Shared Equity criteria to see.

Are there any homes in Nelson for $240,000?  Well for one if a three bedroom home comes on to the market at that price you had better be quick. An alternative would be a two bedroom or two bedroom with study or conservatory,…and yes some are available at this price. In fact on a recent agents inspection tour, I saw one such 3 bedroom home, close to town and shops, across the road from a park, and all for $215,000.

If you conduct a search on www.realestate.co.nz and utilise the pricing bands as your search criteria you’ll usually get quite a few picks. If you’d like to know more just contact me.