A Rotorua emergency housing provider has raised concerns over the governments scheme to build 100,000 new homes in the next decade. Visions of a Helping Hand general manager, Tiny Deane says for many families home ownership will still be unaffordable.
For many families living in Rotorua, home ownership is an unattainable dream.
“I doubt in my mind that they would be able to afford the Kiwi scheme homes on the 100, 000 houses, because they're all on the benefit,” said Deane.
“They've got kids, they've got issues, a lot of mental issues. They don't know how to budget properly.”
The government plans to build 50,000 homes outside of Auckland at prices of between $300,000 - $500,000. Deane says the Greens housing policy of Rent-to-buy would better suit the struggling families he helps.
“If you don't have to have a deposit and it is a rent to buy and they have to pay under 30 percent off the money they receive on a weekly basis, that would definitely work,” said Deane.
“Ray White have approached us to come down and show our whānau how to apply for rentals.”
The median purchase price of a home in Rotorua is $400, 000. Realtors here are welcoming the Kiwibuild build scheme to meet the city's housing shortage.
“Typically when we sell a house, we might have two or three people offering on the same,” said Ray White auctioneer James Alexander. “So that's two or three people who haven't got the house, they've got to go to their next house. There's always multi-offers on houses.”
“It's going to take a while before that gets up and running so you're still going to have that shortage, said Senior Property Manager, Sandy Jennings.
“But anybody that can provide more homes, however they do it will be a big help.”
Vision of a Helping Hand will open their hostel to house 18 families of women and children next week.