This month we are excited to inform you that we have entered into a competitive public tender process to purchase 34 family homes from Transit New Zealand who are realigning the Kamo motorway extension in Whangarei. We expect to be advised on the outcome of our tender on or about the 23rd October. In the event we are successful with the tender we intend relocating the houses in the Far North as part of a real attempt to provide both affordable including asset building home ownership for low income families.

The homes have been well maintained, and looked after so they are in above average condition. They were built in the 50s – 60s-70s, are 2,3 & 4 bedroom and vary from weatherboard, fibro-plank, stucco and brick.

The cost of the house will be around $75,000.00 for an average 1,000 square foot home or $750.00 a square metre. Included in the costs is the transportation to your land, on foundations up to the building code. All engineering specifications, Water Tank & Pump, septic & drainage is included. Purchasers will also be offered the opportunity at their own cost to uplift any garages, fencing, fittings and plants from the existing sites in Whangarei prior to the house being uplifted.

The following is an approximate breakdown of costs

Purchase Price (Tender) – $10,000
Transport and foundation cost – $28,034.
Decoration: – $ 7,000.
Driveway ( 10 metres of spread Limestone ) – $ 500.
Engineering site plans etc – $ 2,996
Floor and window coverings – $ 2,500
Council Permit Fees – $ 2,000
Contingency – $ 1,470
Reinstatement as per tender – $ 4,000

Services and connections

Water Tank – $3,000
Water Pump – $ 1,500
Power – $4,000
Sewage – $ 8,000

Total project costs – $75,000

The final cost of home repayments have been carefully calculated to cost no more than $172.00 per week so that you will own the home after 14 years. We have built a number of assumptions into our model and they include the following, that you have a section and that the section the house will be transported onto has reasonable access, is generally level and is no more than 100 metres from the power.

Home Loan application

We are happy to assist you at no cost to complete your home loan application and go over the associated application checklist with you.

We will assist you to prepare budgets and respond to any concerns the bank may have (If you would like us to). Insofar as your finance is concerned The government has a home loan package designed to help low income families called “Welcome Home Loan”, which will allow you to borrow up to $200,000.00, with NO DEPOSIT. Three or more borrowers who will be living together can team up to purchase a home, however the maximum income for two borrowers is $85,000.00.

Furthermore you must live in the home and not use it as a rental property. You must not own another home and finally you should have a reasonable credit rating and must
take out mortgage insurance 1%.
If you are worried about your credit rating or do not own your own land we may still be able to help, so what are you waiting for call us now we are waiting for your call.

With a Welcome Home Loan…

you don’t need any deposit for loans of $200,000 or less. For loans between $200,000 and $280,000 you need a deposit of just 15% of the amount over $200,000. Home loan deposits usually can’t be gifted, but with a Welcome Home Loan they can.

We’ll also consider more than two sources of household income when looking at whether you’ll be able to meet repayments. This means, if you’re living in an extended family, you can repay the loan together.

Eligibility
To be eligible to apply for a Kiwibank Welcome Home Loan*, you must:

• have a total household income of no more than $85,000 a year for individual or joint applicants
• have a total household income of no more than $120,000 a year if there are three or more main sources of household income and all income earners are co-borrowers. We’ll consider up to six co-borrowers (multi-borrower fee applies)
• have an acceptable credit history
• be able to meet the loan repayments
• buy the house to live in yourself
• not already own a home
• meet Kiwibank’s lending criteria.

You can’t use a Welcome Home Loan to refinance an existing home loan.