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Source: ONE News -
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The government has announced a policy to allow state housing
tenants to buy their own homes by September.
But there's a catch - the policy is aimed at people who can afford
to rent their own home, but are clinging onto their state
house.
Also those excluded from the offer would include homes on land subject to Treaty of Waitangi claims or land not owned by Housing NZ, blocks of flats which were not on separate titles, and any homes considered strategically important.
Housing NZ would not have to sell any house; buyers must live in the house and could not live in a state house for three years after their purchase.
There are 69,000 state houses, half (33,600) of those will be put up for sale to tenants at market rates, as assessed by an independent valuer, and the government would consider increasing the cap on Welcome Home mortgage guarantees to make it easier for all low income buyers.
Heatley says Housing New Zealand is providing an opportunity for those in a state house who've always wanted to buy their home.
Hundreds of people were likely to take up the offer, Heatley says.
But questions are being asked if that is actually possible especially when the average state house income is just $324 a week.
Labour's housing spokesperson Moana Mackey is one those questioning the government.
"The average state house now has a value of around $350,000, so even if the government extends the cap on Welcome Home Loans to enable them to be used to purchase a state house, an average $22,500 deposit would be needed on top of the decent weekly income needed to service such a mortgage," says Mackey.
But Heatley says the government understands the reality of the situation.
"The reality is there's very few who can afford to buy their home, but even so why not give them the opportunity," says Heatley.
One of those people who's taking the opportunity is Tony Afimeimounga.
The state housing tenant has lived in a Dunedin state house for seven years and he wants to buy it off the government.
"It is quite important to us if we finally find a place to settle down and to live," says Tony.
He started off on low incomes, got into a state house and got subsidised rent.
Now he's earning a good income and pays market rents.
There are 5500 state houses where the tenants are wealthy enough to pay market rents - 2800 of those will be sold for $690 million.
That money will be used to build new homes for 4000 people, who are on the priority list for a state house.
"Essentially we're concerned about those people who've been languishing on the waiting list for many years now. We'd prefer to house them," says Heatley.
And with that in mind it's promising 1500 more state homes by 2012.
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