PHOTO: KiwiBuild. FILE
Changes to the KiwiBuild price caps
- The Government has increased the price caps to reflect the current housing market and encourage the delivery of more KiwiBuild homes for purchase.
- Price caps are used to set the maximum price that KiwiBuild homes can be sold for and differ by size and location.
- The new caps have generally been set with reference to the estimated lower quartile market valuation of equivalent new build homes in each location. You can view the new price caps on the KiwiBuild website.
- KiwiBuild price caps are set for standard one, two and three-bedroom homes. The Government will consider approving developer proposals that include the delivery of the following types of KiwiBuild homes above the price caps: Four or more bedrooms, or Accessible/universally designed. These amendments are intended to encourage the delivery of KiwiBuild homes that better cater to larger, potentially intergenerational families, and those with accessibility needs.
Changes to the KiwiBuild eligibility criteria
The income cap for multiple buyers has increased from $180,000 to $200,000.
- This opens the KiwiBuild programme up to more prospective first home buyers and acknowledges the higher cost of KiwiBuild homes – particularly those with three or more bedrooms.
A new income cap category has been introduced for ‘individual buyers with dependents’, with an income cap of $150,000.
- This new category recognises that individual buyers with dependents may need to purchase a KiwiBuild home with more bedrooms, which requires a higher income to afford.
- A person who has dependents has the responsibility for part-time or full-time care of a child/children or other dependents. In most cases dependents will be children, but this definition applies equally to dependent adults in the household.
The definition of an eligible KiwiBuild buyer will revert to “first home buyers” and “second chancers” (someone who has previously owned a home and meets the KiwiBuild eligibility criteria)
- As part of the economic response to COVID-19, the Government temporarily expanded the definition of KiwiBuild eligibility to include existing homeowners who sought to relocate due to COVID-19, or were selling their home to purchase a KiwiBuild home (provided that at the end of the transaction they only own one home). This will now revert to the original definition, to focus on first home buyers.
Frequently asked questions
What do these changes mean for first home buyers?
The changes are intended to encourage the delivery of more KiwiBuild homes and provide greater opportunities for first home buyers to achieve home ownership.
How does the KiwiBuild programme work?
Kāinga Ora – Homes and Communities administers the KiwiBuild underwrite programme on behalf of the Government.
It involves the Government underwriting a portion of homes in new residential developments, to facilitate the delivery of affordable homes. In return, participating developers agree to sell the underwritten homes at or below the KiwiBuild price cap. The underwritten homes must be offered, in the first instance, to eligible KiwiBuild buyers.
KiwiBuild homes can also be integrated into Kāinga Ora large-scale urban regeneration projects – which provide a mix of affordable, public and market homes – or enabled through the Government’s Land for Housing programme.
What other support is available to help first home buyers?
Kāinga Ora administers a range of home ownership products on behalf of the Government. This includes First Home Grant, First Home Loan, and the shared ownership scheme First Home Partner. You can find the full range of home ownership products and resources on the Kāinga Ora website.
How do I purchase a KiwiBuild home?
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