An Affordable Housing Plan is Underway

Construction of the first six houses of an affordable housing project in Queenstown began

The Queenstown Community Housing Trust builds two two-bedroom homes and four three-bedroom homes in Shotover Country as part of its Pilot Project, Secure Home

The Chief Executive Officer of the trust, Julie Scott, said that it was the first in New Zealand, where people buy properties through an emphyteutic lease of 99 years and the trust retains ownership of the lands in perpetuity.

lots in Cherwell Lane Shotover Country were transferred to the trust by the developers as part of the special housing area process of the Queenstown Lakes District Council

"The essence of the shared home program means that a household will be able to buy the house around

"They will then pay a very low land rent on the land, which will only increase each year and according to inflation.

In the pilot, low the land rent will be set at 1.5% of the value of the land.

& # 39; A typical lease provides for a return of 4% to 5%, so we are very happy to be able to do so at 1.5%, for example a section of $ 300,000 would yield a rent of $ 4,500. per year, or $ 86.50 per week. "Ms. Scott added:

Another aspect of the program is a restricted resale clause that can not be resold. She added that the property would have remained affordable for future owners, she said.

More than 500 households are available to the trust at the original purchase price, plus the consumer price index for past years. Mrs. Scott was not worried that the new program would be well received

"When your options are either to continue paying excessive rents or to buy your own home under an affordable assisted property model permanently.

The civil works were completed earlier this month, and the houses are in various stages of construction.

Breen Construction builds the houses, and is expected to be completed early 2019. [19659003] Home security was one of the many measures developed by the group of Mayoral Housing Affordability Work

John MacDonald, Chair of the Queenstown Lakes District Task Force and Councilor, said he was pleased with the progress made

. to get out of the task force report, and the board is behind the 100% confidence. "