Important Update - Program Being Discontinued
As of May 2024, the Government has announced that KiwiBuild will be officially scrapped. Housing Minister Chris Bishop confirmed the program will be wound down as part of broader changes to Kainga Ora.
The program fell significantly short of its original 100,000 homes target, with only around 1,300-2,000 homes built. Some contracted properties may still be available, but no new KiwiBuild developments will be created. First home buyers should explore other options such as the First Home Loan scheme (5% deposit) and KiwiSaver first-home withdrawal.
Disclaimer:
The information on this website is for general guidance only and does not constitute financial or investment advice. Always do your own research and seek personalised advice from a qualified financial adviser or mortgage adviser before making financial decisions. All investments carry risk and past performance is not indicative of future results.
Key Takeaways
- Update: KiwiBuild has been announced to be discontinued by the Government.
- The program originally aimed to deliver 100,000 affordable homes but fell short with only ~2,000 built.
- Some contracted properties may still be available through the KiwiBuild website.
- First home buyers should consider alternatives: First Home Loan (5% deposit) and KiwiSaver first-home withdrawal.
Launched in 2017, KiwiBuild set out with an ambitious goal of delivering 100,000 affordable homes for first home buyers. Since its inception, the program has encountered challenges and its critics along the way. However, there have been noteworthy positive changes made to the KiwiBuild initiative, which this article aims to cover comprehensively.
What is KiwiBuild?
KiwiBuild is a Government program that aims to help first home buyers in New Zealand gain access to more affordable housing opportunities. KiwiBuild works with residential developers to bring more affordable homes to the market faster, and offers high-quality, sustainable homes that meet the needs of first home buyers.
Important: KiwiBuild properties are not sold on the open market. Instead, they are sold via a ballot or direct to KiwiBuild eligible purchasers. When you have found a KiwiBuild home, you can enter into a sale and purchase agreement with the developer for that home.
Are You Eligible?
Not all first home buyers are eligible to take part in the KiwiBuild program. Make sure you meet the criteria:
Basic Requirements:
- Be over 18 years old
- Be a New Zealand citizen, permanent resident, or a resident visa holder who is "ordinarily resident in New Zealand"; or
- Be applying with someone who meets the citizenship or residency requirements, and you are married to or in a civil union or de facto partnership with that person
- Be a first home buyer or previous homeowner
Income Requirements:
Have a total before tax income from the last 12 months of:
- $120,000 or less for an individual buyer without dependents; or
- $150,000 or less for an individual buyer with one or more dependents; or
- $200,000 or less for two or more buyers, regardless of the number of dependents
Additional Requirements
In addition to the above, you must intend to own and live in your KiwiBuild home as your primary place of residence for a Minimum Ownership Period, calculated from the settlement date of your purchase. This means at least one year for a studio or one-bedroom home, or at least three years for a home with two or more bedrooms.
You must not have a current legal or beneficial interest in a home in New Zealand or overseas, and you must not be married to, nor in a civil union or de facto relationship with, someone who has such an interest. Additionally, you must not currently have any unregistered interest in a home, including as the beneficiary of a trust.
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I Qualify! Now What?
Now you know that you qualify to be a KiwiBuild purchaser, you need to apply to KiwiBuild.
What You Will Need
To complete your application, you will need a certified copy of your New Zealand birth certificate, citizenship certificate, passport and/or visa status, along with a summary of income from the Inland Revenue Department for the previous 12 months. You will also need a signed copy of the KiwiBuild Statutory Declaration, which must be signed by an authorised person in New Zealand such as a Justice of the Peace, a solicitor or notary public, or a Registrar or Deputy Registrar of the District or High Courts. If you are self-employed, there are alternate forms of evidence you can submit.
Application Steps:
- Create a KiwiBuild account
- Upload your certified eligibility documents
- Upload your signed statutory declaration
- Submit your application to the KiwiBuild team
It then takes up to 5 working days to process your application.
What Homes Are Available?
Now you are a registered KiwiBuild purchaser, you can start looking for available properties. To keep KiwiBuild homes in more affordable price ranges, price caps are used that set the maximum price all KiwiBuild homes can be sold for.
Auckland KiwiBuild Price Caps:
- Studio or one bedroom: $550,000
- Two Bedroom: $760,000
- Three Bedroom: $860,000
You can visit the KiwiBuild website to see what properties are currently available, and sign up to the KiwiBuild Mailing list so that you receive any new listings that come available.
Next Steps
Once you have found a home you are interested in, get in touch with the developer and they will be able to provide you with more information.
Frequently Asked Questions
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