Shared equity schemes - how do they work?

Property

With the increasing unaffordability of housing in our main centres, many local authorities, Housing Trusts, and even public companies like Fletchers are looking at shared equity schemes as a way of bridging the gap between the market value (say $600,000) and what first time buyers can afford to pay for that same property (say only $400,00

The NZ Housing Foundation in Auckland and the Queenstown Lakes Community Housing Trust have been the pioneers of such schemes in New Zealand. The schemes are worth considering when you have land but could afford to wait to receive the land price in the future, including a share in the capital growth!

In this article we look at some of the key features of shared equity schemes.