October 02, 2013
Green plan ‘rent to buy’ housing
Green Party co-leader Metiria Turei is calling for a whole new approach to housing, because existing models aren’t working.
New Reserve Bank rules mean homebuyers must now have a 20 percent deposit before banks can issue loans, raising fears many first home buyers will be locked out of the market.
The Government is also starting to sell off vacant state houses in rural areas, offering a subsidy to help people make the new deposit requirement.
Ms Turei says it will still leave many families, especially Maori, with no prospect of ever buying a house of their own.
That’s why the Greens have proposed the Home for Life plan, where people buy government-built houses with no deposit or mortgage.
"So basically you pay off the house over time with a little bit extra on your rent. It’s a similar process to the old State Advances or Maori Affairs loans, because people can’t afford to save for a deposit of any kind, let alone 20 percent, they can’t afford to service a mortgage, and they can’t afford to be in debt because if they are on a fragile income and they lose work for six months or a year, then they risk losing their house," Ms Turei says.
The Maori Party has also come out against the new bank rules, saying they will put home ownership out of thee reach of many whanau.
It says the policy shows the social costs of allowing economic interests to ignore whanau wellbeing or social good.
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