First home buyers $200 a week better off with Labour

A couple earning around $75,000 a year would be $200 a week better off buying a two bedroom terraced Labour KiwiBuild home instead of an equivalent new build under National’s housing policy, says Labour Leader David Cunliffe.

“National’s policy to give grants to first home buyers to buy new build homes does nothing to address supply and rein in runaway house prices. In fact it will likely push prices higher.

“In contrast, Labour’s KiwiBuild policy will build 100,000 new affordable homes over ten years and sell them at cost to first home buyers. Using the purchasing power of the Government and off-site building techniques we will be able to lower the cost of building a home.

“This will enable Labour to sell a new two-bedroom terraced KiwiBuild home for around $360,000 in parts of Auckland. That compares to around $485,000 for a similar Hobsonville home.

“This will mean a couple earning $75,000 a year – similar to National’s test couple earning $80,000 a year – with a saved deposit of $20,000 plus KiwiSaver will have mortgage repayments of $777 a week under National’s plan and $577 a week under Labour.

“A $200 a week difference in mortgage repayments is huge. It is the difference between realising the dream of home ownership and facing the prospect of years of renting.

“That’s what Labour’s home ownership policy we are releasing today is all about.

“Labour’s policy will help 50,000 families over five years buy a first home. National’s will only give a slightly higher deposit to 40,000 families.

“Only under Labour can young families turn their dream of home ownership into reality, with National it remains a pipe dream,” said David Cunliffe.

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