Buying Your First Home? KiwiBuild Might Be An Option

A row of KiwiBuild homes with a lawn and trees in New Zealand

12 Mar Buying Your First Home? KiwiBuild Might Be An Option

In a property market where housing affordability is a major consideration, government-led initiatives such as KiwiBuild offer some hope for first home buyers struggling to get onto the property ladder. By providing well-designed, quality homes at prices that are within reach, KiwiBuild helps make the dream of home ownership a reality. Read on to find all you need to know about KiwiBuild, including eligibility criteria, price range, and the reasons why it stands out as a viable option for first home buyers in New Zealand.

What is KiwiBuild?

Over the past decade, the supply of affordable homes in New Zealand has been outpaced by growing demand, and many first home buyers now find themselves priced out of the NZ property market. Launched in 2018 to address the challenge of housing affordability, KiwiBuild is a government-led initiative aimed at increasing the supply of affordable homes.

To make home ownership more accessible for first home buyers, KiwiBuild provides quality, well-designed homes at affordable prices. Because KiwiBuild homes are newly built, they’re modern, warm and dry, and meet the latest building codes for safety and insulation.

Who can access KiwiBuild?

KiwiBuild is tailored specifically for first home buyers in New Zealand who meet certain eligibility criteria. To be eligible, you must:

  • Be a New Zealand citizen, permanent resident, or hold a residency visa.
  • Be a first home buyer or previous homeowner.
  • Intend to live in the KiwiBuild home as your primary residence for a set period.
  • Earn $120,000 or less for an individual buyer without dependents; $150,000 or less for an individual buyer with one or more dependents; $200,000 or less for two or more buyers.
  • Prove that you can get mortgage financing needed to buy a KiwiBuild home.
  • Have saved a deposit of 10 to 20 per cent of the home’s value (the deposit will be subject to the same conditions such as LVR).

What is the price range?

One of the key attractions of KiwiBuild is its affordability. The initiative targets homes that fall below the median house price, ensuring first home buyers can enter the property market without facing the prohibitive costs that often come with home ownership. House prices vary across the region and the sale price is set by the developer reflecting the type, size and location of the KiwiBuild home.

To ensure the homes remain affordable, house price caps are used to set the maximum price for which all KiwiBuild homes can be sold. Starting at just $550,000 for a studio apartment in locations like Auckland or Tauranga, house prices caps range up to $860,000 for a 3-bedroom stand-alone home in Auckland or Queenstown Lakes.

Why consider a KiwiBuild home?

Here are 2 important reasons why KiwiBuild may be a viable option for first home buyers in New Zealand:

  1. Affordability. KiwiBuild homes are designed to be more affordable than the median house price in New Zealand, making these homes an attractive option for first home buyers who may struggle to enter the property market otherwise.
  2. Quality construction. KiwiBuild homes are well-designed, high-quality homes, built to meet the latest building codes, providing first home buyers with reliable and durable properties that meet modern standards.

Realising the dream of home ownership

The KiwiBuild initiative is an ongoing effort to address New Zealand’s housing challenges. While the program has faced some challenges in the past, the government remains dedicated to increasing the supply of affordable homes across the country and there’s a continued commitment to creating more opportunities for first home buyers looking to take their first steps onto the property ladder.

To find out more about buying a KiwiBuild home, or for advice and guidance around navigating the complexities of mortgage finance as a first home buyer, get in touch with an NZ Mortgage Adviser at Max Mortgages. Our team is experienced at helping first home buyers through the home buying process and finding the most suitable home loans NZ wide.

Contact a Mortgage Adviser


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