Our Shared Ownership Programme provides an opportunity for you and Housing Foundation to share the ownership of a property. You would buy a majority share of the property (usually 60% or more) making it more affordable for you than if you were to buy 100%.
Housing Foundation would retain ownership of the remaining share of the property (e.g. 40%) and both you and Housing Foundation would be recorded on the property title as owners until you are able to buy us out. Most households are able to do this within 7-10 years. You will need a deposit (your savings plus KiwiSaver) and a mortgage for the balance of the purchase price to buy your share. This will all be explained to you in detail before you are asked to sign a Shared Ownership Agreement. Look at this example where you buy 60% and Housing Foundation retains the remaining 40%.
Example figures for ownership of a 60% share in a property priced at $720,000. |
|
|---|---|
| Property’s market value (for example only) | $720,000 |
| Household buys 60% of the property with their deposit and bank mortgage | $432,000 |
| Housing Foundation’s share is the remaining 40% of the property | $288,000 |
In this example, Housing Foundation retains 40% ownership of the property. You can buy our share out over time as your savings and/or income grow. Your funds for the initial purchase come from your deposit and the mortgage from the bank.
If you have manageable debt (not including student loans) that can be paid off within 5 years, and a low deposit, our HomeSaver Programme may be an option for you. Please apply and Housing Foundation will assess your Application and advise you which programme is most suitable for you based on your financial circumstances. Find out more about the Rent to Own (HomeSaver Programme).
Sixteen new townhouses under construction now, eight of these are for our Shared Home Ownership programme.
Home ownership opportunities in the Greater Christchurch area; one such opportunity is in Halswell Commons now!
Under this arrangement, you secure a mortgage with a bank. Housing Foundation will assist in this process as we work with major banks who support our programme. As your financial situation improves, you can increase your share (percentage) of ownership until you own the property 100%. Each time you apply to purchase additional shares in your property, you are required to pay an Application Fee which covers a new valuation and our administration costs. You may buy additional shares from one year after moving in, in portions of no less than 5% at a time, until you own 85%. The final purchase of 15% is to be done in one transaction and then you own your home 100%. Housing Foundation does not charge you rent or a monthly fee on the share it owns. We do charge an Annual Management Fee to cover operational overheads, dealing with the administration of the property and for assisting you achieve full home ownership over a period of time.
Please check our locations for where we are building now and in the near future.
It is determined by an independent registered valuer, who sets the value based on recent sales in the area.
Housing Foundation plays a passive role. Housing Foundation does not charge the household any interest or rent for its share of the property. When the property is sold, both the household and Housing Foundation get their share of any increase in the value of the property.
For example, the below figures show a household ownership share of 70%:
| Property purchase price (example only) | $700,000 |
| Household’s ownership amount (70%) | $490,000 |
| Housing Foundation’s ownership amount (30%) | $210,000 |
You may purchase more shares-a minimum of 5% each time-in your home any time after the first anniversary of your purchase date. Once you own 85% of your home, you must buy Housing Foundation’s remaining 15% in one transaction.
Housing Foundation expects you to fully own your home within 15 years. If you do not own it outright by then, Housing Foundation will charge you interest on the share of the house that you do not own.
You apply using the online Application Form.
Housing Foundation will assess your Application and advise you which programme is most suitable for you based on your financial circumstances. Find out about the Rent to Own (HomeSaver) Programme.
Once you submit an Application, it can take up to 6 months before you are approved for a home. Not every Application is successful but we will do all we can to help you become a homeowner as quickly as possible. This may include helping you manage your finances better so you become ready to take on the responsibilities associated with home ownership.
Check the locations where Housing Foundation is building homes now or in the future and the eligibility criteria and requirements for each of those Locations.
Housing Foundation needs your personal, financial, family and employment information so we can assess your application. For each Applicant you will need to upload or send:
Complete our secure online Application Form here OR download the Application Form, complete it by hand and send by courier or registered mail for security reasons, with all the Supporting Documents to: Housing Foundation PO Box 8597, Symonds Street, Auckland 1150
Once you have submitted your Application Form and supporting documents to the Housing Foundation you will be sent an acknowledgement message. It may be several days or (sometimes) weeks before you are contacted again. Please be patient while we assess your Application – there is a lot of information to go through.
