Queenstown families buy homes for under $400k

PHOTO: New homeowners Kris and Karla Lodge outside their new home in Lake Hayes Estate

Ten families in the Queenstown Lakes District are now homeowners thanks to an affordable housing initiative by the Queenstown Lakes Community Housing Trust (QLCHT).

Last week the Trust handed over the new homes – located in the Alps View development at Lake Hayes Estate – to the 10 households.

QLCHT executive officer Julie Scott says home ownership opportunities under $400k are extremely rare in the district and the Trust is delighted to support the families through Secure Home, a ground-breaking assisted ownership model.

“Home ownership opportunities under $400k are rare in the Queenstown Lakes,” she says. “But under the Secure Home programme, the household buys in at the cost of construction and then pays a below-market ground rent on the land.”

The model is made possible when QLCHT receives land from developers through the inclusionary zoning process. The two- and three-bedroom homes – built by local construction company Breen Homes – sold for between $334k and $392k. The average ground rent is $115 per week.

The Ministry of Housing and Urban Development also provides support with a 15-year interest-free loan through its Progressive Home Ownership Fund. This fund forms part of the Government’s bid to increase alternative forms of home ownership around New Zealand.

“Due to the incredibly low purchase prices, we had huge demand for these homes from our waiting list,” adds Scott. “Fortunately, we have a solid pipeline of opportunities like this coming up in both Queenstown and Wānaka and we will be able to assist many local families over the next few years.”

An additional three homes in the Alps View development are being retained as permanent, affordable rentals or rent-to-buy units with QLCHT.

Queenstowners Kris and Karla Lodge were the recipients of one of the 10 homes secured through the QLCHT last week.

“Owning this home means the world to us, it’s for the rest of our lives,” says Karla. “We wouldn’t be able to stay in Queenstown if we didn’t have this – we would never be able to afford to buy a home here with the current property prices. Now, it feels like we can enjoy life in Queenstown how it’s meant to be enjoyed.”

The first of its kind in NZ, Secure Home is a programme where people purchase the properties through a 100-year land lease arrangement, with the Trust retaining ownership of the land in perpetuity.