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2<br />
10 [Edition datE]<br />
Your guide to Show Homes & New Sections<br />
in the <strong>Selwyn</strong> District<br />
Buying your first home<br />
Policy changes to the KiwiSaver HomeStart Grant have led to many young people<br />
looking to settle in <strong>Selwyn</strong> where cheaper land makes owning a new home achievable.<br />
While many lenders may require a 20%<br />
deposit when purchasing a home, a 10%<br />
deposit is all that is needed under the<br />
Welcome Home Loan Scheme.<br />
This deposit may comprise savings,<br />
cashed in KiwiSaver funds and a<br />
HomeStart grant which is available if a<br />
person has paid into KiwiSaver for at least<br />
three years.<br />
There are two grants available under<br />
the HomeStart scheme. If purchasing an<br />
existing home, the grant is between $1,000<br />
and $5,000 for each year a person has paid<br />
into KiwiSaver, while this figure doubles<br />
if purchasing a new home. It means that<br />
two partners who have paid into KiwiSaver<br />
for five years will have a combined grant<br />
of $10,000 for an existing property and<br />
$20,000 for new.<br />
This explains why so many first home<br />
buyers are looking to purchase new<br />
though they must be over 18 years, have<br />
a combined gross income of less than<br />
$130,000 (or for one person less than<br />
$85,000) and commit to living in the<br />
home for a minimum of six months after<br />
settlement.<br />
Previous home buyers could qualify for<br />
a HomeStart Grant if they no longer own<br />
a home and their financial situation has<br />
deteriorated due to say a relationship break<br />
up, bringing their realisable assets to no<br />
more than $100,000 (for Canterbury).<br />
First home buyers should also research<br />
what is on offer in the market as not all<br />
smaller, compact house and land packages<br />
are equal. Some building companies have<br />
only a small range of plans which might<br />
not appeal to the buyer or suit their needs.<br />
First home buyers also need to be wary<br />
about add-on costs. Extras like fencing,<br />
landscaping, exterior hard surfaces and<br />
changes to the design specifications, which<br />
can increase building costs putting the<br />
home out of the buyer’s reach. The quality<br />
of fixtures, fittings, appliances and floor<br />
area can also vary.<br />
In a housing subdivision, there is<br />
also likely to be a covenant requiring<br />
landscaping to be completed within a<br />
certain timeframe which might be before<br />
moving in or within six months.<br />
Some building companies, like<br />
Generation Homes, have addressed these<br />
issues, establishing a final build price while<br />
offering a well-designed affordable home<br />
that will fit within the price range of a<br />
first home buyer and also provide quality<br />
fixtures and fittings. A stone benchtop,<br />
recognised brand appliances, heat pump<br />
and complete landscaping from the<br />
concrete driveway to the fences, lawn and<br />
shrubs, letterbox, clothesline and irrigation<br />
system are all part of the package.<br />
“We recognised the need for our first<br />
home clients to have surety and have<br />
developed a package that means they can<br />
afford a new home that they will be happy<br />
in,” says Evan Beker who along with his<br />
wife, Nadja are the joint venture partners of<br />
Generation Homes Christchurch.
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