Five Dunedin state houses with a combined value of $833,000 go on sale today as part of Housing New Zealand's FirstHome initiative.
Housing Minister Nick Smith announced last week modest-income earners would be given a 10% deposit up to $20,000 and priority to buy surplus state houses.
The new scheme was announced as the Reserve Bank's restrictions on new home lending came into effect meaning many will need a 20% deposit to buy a house.
About 360 of Housing New Zealand's 69,000 homes across New Zealand's provincial centres have been earmarked for the programme. Of those, 41 go on sale today.
''They have an average value of $120,000,'' Dr Smith said. The homes were vacant and considered not
the right type for people on Housing New Zealand's waiting list.
In Otago, 27 homes will go up for sale during the next three years, 18 of those in Dunedin. In Southland, 23 will go up for sale, including 11 in Invercargill. Today, one house
goes on sale in Milton, Balclutha, Gore and Cromwell, five in Dunedin and four in Invercargill.
Of those for sale in Dunedin, two are in Corstorphine, one in Wakari, one in Port Chalmers and one in Calton Hill. Their capital values range from $133,000 in Port Chalmers to $210,000 in Calton Hill, the smallest property at .0491ha.
The houses were chosen for sale because they were no longer appropriate, in the wrong place or of the wrong configuration.
The other properties on the list would go on sale when they became vacant and if there had been no changes to local demand, the amount of maintenance needed and their ability to be sold conventionally.
Dr Smith said the high cost of upkeep on empty houses, including rates and vandalism, meant the cost of the grants would be ''largely offset''.
The money from the sales would be used to help fund investment in more state homes ensuring they were in the right place, of the right size and of good quality, Dr Smith said.
''The properties available for FirstHome are those that are vacant and unlikely to be required for eligible state house tenants because of their size and location,'' Dr Smith said.
If the homes were not bought within three months by a FirstHome buyer they would also go on the open market.
Eligibility
• Be a first home buyer.
• Have to live in house for 3 years.
• Have gross annual income of $53,000 or less or a combined income of $80,600.
• Pre-approved by a certified lender.
