As a mortgage adviser I will look at all options to help first home buyers, and shared home ownership is one of those options.
For many people as first home buyers the ability to buy a home on your own is difficult; however if you had someone that you would share the ownership with it may be the difference in being able to get your own new home or staying renting.
It’s not quite the same as owning your own home 100% but it’s a great way to get onto the property ladder.
What Is Shared Ownership?
Shared ownership is not a new concept – it is the way that many people have been able to buy their first homes.
Shared home ownership is an alternative method to use when purchasing your home, whereby you share the ownership with a partner. With the support of the bank you may own 80% or more and a commercial partner owns the remaining share of the property.
You have one foot on the property ladder, no more worries or stress with renting, and have the freedom and flexibility of living in your own house and creating a home. At a later stage you can buy the remaining share at the market value at that time.
The Options
There are a few options for shared ownership.
The most common shared ownership is where family are able to help – but that is not an option for everyone and so there are some good alternatives.
First Home Partners – this is the Government backed option which is managed through Kianga Ora (Housing New Zealand) and can provide up to 25% of the purchase price for brand new homes, but only if you meet the criteria including the income cap
YouOwn is a commercial shared ownership option and has less restrictions but is more expensive than First Home Partners. YouOwn will provide a shred ownership option on both new and existing homes.
These are the two most common shared ownership options available for first home buyers in New Zealand.
