Mike Pero Mortgages Looking Forward To New Housing Policy

Nov 08

Mike Pero Mortgages is looking forward to the Government-elect’s housing policy, which it believes will be positive for existing home-owners and for new home-buyers looking to enter the market.

“While recent cuts in floating rates have helped families with home-loans, we are looking forward to new policies which will help maintain the Kiwi dream of home-ownership,” says Shaun Riley, Mike Pero Mortgages Chief Executive.

The National Party’s policy is to free up the supply of land for sections by requiring councils to plan for a forward supply of residential land, and by making it easier to redevelop areas within existing cities and towns.

“High section prices reduce housing affordability, so by freeing up the availability of land prices should drop, making it easier for people looking to build new homes.” State housing tenants are also likely to be given the option to buy the house they are living in.

“People who may have rented most of their lives will need good advice on how to source and manage a mortgage and Mike Pero Mortgages is very well-placed to work with prospective home-owners throughout New Zealand.”

Another proposed National policy is to develop a ‘Gateway’ housing scheme, which provides the free use of a ‘ready-to-build’ leased section of up to 10 years.

“People under this scheme will need to begin building within one year, and it simply provides another option for people looking to establish themselves in the property market.”

The scheme would allow people to purchase the leased land for a period of up to 10 years at its original capital value plus 3 per cent per year.

“It is also good to see the National Party is proposing to continue with the Shared Equity pilot scheme, or offer people the option to switch to the Gateway scheme.

“All in all we believe the new Government’s policies will encourage home ownership by increasing the availability of sections and providing options for prospective home-owners to enter the market with a minimum of risk,” concludes Shaun Riley.

For more information contact:
Shaun Riley
Chief Executive Officer
Mike Pero Mortgages
(021) 287 8727