NZ: First home buyers show immense interest in KiwiBuild

New Zealand has embarked on a project known as KiwiBuild, which aims to provide prefabricated homes (also known as prebuilt or modular homes) to first- home buyers (FHBs) who face high costs of market entry.

Prefabricated homes are houses that are constructed off-site in advance and can then be transported to a property site. Over 1,100 people have registered their interest in a KiwiBuild home in just over 2 hours, greater than the number of homes scheduled to be completed by the end of this year.

The Kiwi government is only expecting to build 1,000 of its 100,000 affordable homes before July 2019. These 1,100 people will go into a draw once the homes are completed. The fast-growing interest in prefabricated housing amongst New Zealand residents is also displayed in RFi Group’s data which states that 7 in 10 borrowers are aware of prefabricated housing, with those living in rural and regional areas showing higher awareness than those living in the city.

The selection criteria are based on an income ceiling of $180,000 for couples, or $120,000 for sole buyers. Citizens and permanent residents are permitted to purchase homes, provided the homes are not sold or rented out for the first 3 years. The homes will be available to FHBs and people who have been through a divorce or have lost the property.

KiwiBuild homes have price caps that differ across the country. These prefabricated 3 bedroom homes in Auckland and Queenstown will cost under $650,000, 2 bedroom homes costing under $600,000 and one-bedroom homes costing under $500,000. All KiwiBuild homes outside these two vicinities will cost under $500,000.

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