Yesterday when I was explaining the Shared Equity Scheme with a young, just married couple they said….3 bedroom home in Nelson under $250,000 – you must be joking!
A while back I talked about the new pilot scheme being trialed in 5 NZ cities and how a buyer can get some real assistance from the government. Nelson just happens to be one of those 5 selected cities. And the reason this scheme exists?
Well, glad you asked, it’s so buyers on modest incomes can buy their first home.
To be sure, you need to qualify first.
So, just to recap, the pre-requisites for Nelson is that the home needs to be no dearer than $240,000, and the buyer needs to contribute a minimum of 5% as a deposit.
Well guess what……look what I found!
A three bedroom home for under that, in fact $230,000 to be precise, and with views!
So it is possible, but yes you have to look, and NO, it will not be a waterfront property.
However if you approach it with the view that for the next 3-5 years it’s really your OWN home and what you would’ve paid in rent is actually now not wasted, then at the very least you get a chance to get a step up onto the property ladder, and that’s got to be a good thing.
To check out things again from a Kiwi perspective go to the calculator on NZ Consumers www site.
And as a last item if you have hear or see “rent – to – buy” just be aware that the NZ Commerce Commission was so concerned about it they urged independent legal advice if you were considering it.