Rising house prices hit iwi scheme to help low income earners
Monday 9 August 2004
Escalating house prices are making it difficult for low-income Northlanders to buy a home, according to Kia Ora Ngapuhi Housing.
By The LandlordLast financial year, the number of low deposit housing loans that Ngapuhi Housing secured for Northlanders through a Housing New Zealand Corporation scheme was down by nearly 30 percent, compared with the previous 12 months.
The Low Deposit Rural Lending scheme offers individuals or couples who earn no more than $50,000 gross per year the chance to get a home loan of up to $150,000 with a 3 percent deposit.
Ngapuhi Housing can administer up to 90 loans each year in an area between Wellsford and south of the Hokianga. It reached that number in the financial year ended June 2003.
However, in the 12 months ending June 2004 it allocated only 64 loans.
Chief executive Kaye Taylor said Northland house prices had risen by about 34 percent in the last two years, and had forced many low income earners out of the home ownership market.
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