From NZ Herald · · 1m 50s
Labour announces rent-to-buy scheme for public housing tenants
Labour's new rent-to-buy scheme helps public housing tenants save for home deposits.
In brief
Labour's new rent-to-buy scheme helps public housing tenants save for home deposits. Labour plans to let public housing tenants save $5200 yearly through a rent-to-buy scheme to buy homes with a 5% deposit. Originally reported by NZ Herald.
Labour's rent-to-buy scheme
Labour's housing spokesman Kieran McAnulty announced a rent-to-buy scheme for public housing tenants.
Weekly deposit credits
The scheme credits $100 a week towards a house deposit held in a trust account.
Annual savings benefit
Labour says the scheme helps tenants save $5200 a year for home deposits.
First Home Loan expansion
Labour will expand the First Home Loan scheme to allow 5% deposits with a $300,000 income cap.
Deposit comparison
For a $700,000 home, 5% deposit is $35,000 versus $140,000 for 20% deposit.
Home purchase option
Public housing tenants can buy their homes with Kāinga Ora under the new scheme.
Build ratio policy
For each house sold, Labour plans to build three new homes to maintain housing supply.
Current tenant numbers
About 1100 public housing tenants pay market rent and could potentially buy homes.
Financial feasibility
McAnulty says tenants can usually meet mortgage requirements but struggle with deposit savings.
Kāinga Ora build program
Funding for the scheme is part of Labour's Kāinga Ora build program to expand housing.
International comparison
Labour cites UK housing policy failures from not maintaining build-to-sale ratios.
Existing home purchase
Public housing tenants can already buy homes from Kāinga Ora through existing programs.
Gang controversy
Labour faced criticism after candidate Kerrin Leoni resigned over gang campaigning photos.
Policy timing
McAnulty said cost of living issues have been discussed more frequently than gang controversies.
What matters most
Labour plans to let public housing tenants save $5200 yearly through a rent-to-buy scheme to buy homes with a 5% deposit.
