Changes to HomeStart Grants (from 1st August 2016)
Building and Housing minister Nick Smith said the government would increase income and house price caps on the KiwiSaver HomeStart Grants scheme to ensure it was helping people into their first house.
From the 1st August 2016, some important changes to the HomeStart Grant scheme will come into effect that are designed to help more Kiwis get into their first home and keep inline with the house price increases.
“This reflects the $50,000 increase in the national median house price since the scheme began,” Smith said.
Of course while these changes will be welcomed by many, housing has become a political issue and there will be plenty of negative comments too. On Facebook there is the Kiwi First Home Buyers Group that always attracts a lot of comment as does much of the social media.
Looking At The Changes
The house price limits and income limits have been increased to enable more Kiwis to access government grants of up to $10,000 per couple to put towards a deposit on their own home (an existing house) or $20,000 if they are building a new home.
The house price limits for existing houses have been increased by $50,000 and for new-builds by $100,000.
CLICK HERE to read the fact sheet.
The New Limits
The new house price limits are;
Auckland
- Existing houses – price limit increases from $550,000 to $600,000
- New-builds – price limit increases from $550,000 to $650,000
Hamilton City, Tauranga City, Western Bay of Plenty District, Kapiti Coast District, Porirua City, Upper Hutt City, Hutt City, Wellington City, Nelson City, Tasman District, Waimakariri District, Christchurch City, Selwyn District and Queenstown Lakes District
- Existing houses – price limit increases from $450,000 to $500,000
- New-builds – price limit increases from 450,000 to $550,000
Rest of New Zealand
- Existing houses – price limit increases from $350,000 to $400,000
- New-builds – price limit increases from $350,000 to $450,000
Plus new income limits are;
- Individual income limit increases from $80,000 to $85,000pa
- Joint incomes limit increases from $120,000 to $130,000pa
CLICK HERE to read more and how to apply for a HomeStart Grant.
It Will Never Satisfy All First Home Buyers
Owning your own home is something that Kiwis have strived for across the generations, and getting started on the home ownership ladder is and always has been a big hurdle to clear.
The Government recognised the difficulties that many Kiwis are having and introduced the HomeStart Grants scheme in 2015 to help first home buyers and effectively it is a “gift” from the New Zealand tax payers to the few that need some extra help getting into their first home. On the other hand, the Government need to be careful that increasing the HomeStart Grant to more people does not add extra fuel to the property market.
Of course there are plenty of Kiwis that never had this assistance and they resent funding the few that are able to apply, there are those Kiwis that feel that even with these increases the limits are too low and there are some people that feel that the State should provide more.
My Personal Experience Of Buying A First Home
It was 25-years ago when I purchased my first home and I would have welcomed any assistance like the HomeStart Grants scheme.
The house I purchased was in Glen Eden, Auckland and in April 1990 I purchased the house for $125,000 which seems ‘cheap’ when we compare with today’s prices, but incomes were a lot lower and interest rates a lot higher – I believe it was just as hard to buy my first home then.
You can CLICK HERE to read more about my experiences but a first home.
The HomeStart Grants scheme is expected to help around 90,000 New Zealanders into their first home over 5-years, but will it help you?
