KiwiBuild homesellers who break the rules can keep 70%

Nov 9, 2018 | News

But there will be a get-out clause for people who have to sell in a difficult situation like a death, illness or relationship break-up.

Responding to a Newshub story highlighting the ability to keep any part of the capital gain from such a sale, Twyford said buyers would sign contracts stopping them selling their house within three years “without the express permission of the KiwiBuild Unit”.

The unit can and would prevent a house sale to enforce the rule, if necessary, he said in emailed comments to BusinessDesk.

“If a buyer breaches their contract, and secretly sells their home without the permission of the KiwiBuild Unit, then they will be liable for contractual damages of 30 percent of the capital gain,” he said. The money will go to the government.

Taking the whole gain would not have been fair, since a secret seller might struggle to buy a new home in a rising housing market if they couldn’t keep any of their capital gain.

Opposition MPs have leapt on the issue as they seek to discredit the KiwiBuild policy, under which the government aims to build 100,000 affordable homes within 10 years. Twyford was forced last week to defend the fact that people on annual household incomes of as much as $180,000 can buy the homes, after the first KiwiBuild dwelling was sold to an upwardly-mobile, middle class couple.

“This isn’t what KiwiBuild was originally planned for, and now it’s even more confusing as to why the scheme is here at all,” said the National Party’s associate finance spokesman Andrew Bayly. “Minister Twyford hasn’t listened to New Zealanders about the types of homes they want and where they want them, so allowing them to sell the property and pocket most of the profit is his solution.”

Twyford said today that KiwiBuild home buyers will also give the government 30 percent of any rent they receive if they rent the entire property within three years of purchase, unless they have prior consent from KiwiBuild..

“We have done this to make sure KiwiBuild is fair and available for those who need it – first homebuyers who want to own their own home,” said Twyford. “This will stop anyone looking to quickly flick off KiwiBuild homes for capital gain.”

However, there needed to be provision for people whose circumstances change through a death, injury, illness or relationship breakdown.

“KiwiBuild has the ability to consider circumstances on a case-by-case basis and work compassionately with families. This strikes the right balance between a community that rightly expects KiwiBuild homes will go to those who need them, and the fact that life is complicated and unpredictable,” the minister said.

A spokeswoman clarified that situations would be judged on a case-by-case basis and that the 30 percent capital gain return would not necessarily be required in all circumstances.

Recent articles

Community Housing Aotearoa (CHA) Newsletter 2 May 2022

Community Housing Aotearoa (CHA) Newsletter 2 May 2022

Human Rights Commission releases troubling indicators on habitability, COVID-19 RESPONSE, First funds released from council housing reserve, Seven-point plan released to tackle cost of living, Community Finance nominated for top industry award, In the News, Events,...

Community Housing Aotearoa (CHA) Newsletter 19 April 2022

Community Housing Aotearoa (CHA) Newsletter 19 April 2022

Haere rā to Brennan Rigby, Manager of Systems Shift, And the Supreme Business Excellence Award goes to…, CHA and Community Finance highlighted as leading housing systems change, Changes to the Healthy Homes Standards finalised, Practical Actions on Climate Change,...

Annual Report

CHA’s 2020/21 Annual Report

CHA’s 2020/21 Annual Report

Strategic Plan

CHA’s Strategic Plan 2018

CHA’s Strategic Plan 2018

Featured Network

Residential Tenancies Act Community of Practice

Residential Tenancies Act Community of Practice

Our Place

Our Place Report 2017

Our Place Report 2017

Case Studies

Media Releases

News

Anti-Social Behaviour notes Nov 21

Tenants Protection Association (Chch) Inc. Notes for presentation at Tenancy Management Community of Practice Nov 2021 Anti-Social Behaviour notes Nov 21

Tenancy Management COP November 2021 summary

tenancy-management-cop-november-2021-summary The final Tenancy Management Community of Practice for 2021 was held via zoom on 11th November 2021. This Community of Practice is relevant for advocates, practitioners, navigators and tenancy managers involved in...

Newsletters

Community Housing Aotearoa (CHA) Newsletter 2 May 2022

Human Rights Commission releases troubling indicators on habitability, COVID-19 RESPONSE, First funds released from council housing reserve, Seven-point plan released to tackle cost of living, Community Finance nominated for top industry award, In the News, Events,...

Community Housing Aotearoa (CHA) Newsletter 19 April 2022

Haere rā to Brennan Rigby, Manager of Systems Shift, And the Supreme Business Excellence Award goes to…, CHA and Community Finance highlighted as leading housing systems change, Changes to the Healthy Homes Standards finalised, Practical Actions on Climate Change,...

Community Housing Aotearoa (CHA) Newsletter 4 April 2022

Welcome to Justin Latif, CHA's new Communications Lead, COVID-19 Response, Ministry for the Environment releases draft National Medium Density Design Guide, Fair Pay Agreement Bill update, Update on the Incorporated Societies Bill, In The News, Events, Community...

Community Housing Aotearoa (CHA) Newsletter 21 March 2022

COVID-19 RESPONSE, From bank overdraft debt repayment plan and into a 'rent-to-own' place of their own, Homelessness Action Plan 18 Month Review, In the News, EVENTS, Sector Call online zoom on Property Management Regulations, Property Council New Zealand -...

Submissions

Legislation

Reports

Research

Community Housing Aotearoa

Contact Us

Contact Info

Level 11, Ranchhod Tower,
39 The Terrace /
102-112 Lambton Quay
PO Box 11543
Wellington 6142

+04 385 8722

support@communityhousing.org.nz

Follow On