Habitat for Humanity homes being built in Whangārei for families struggling to get on property ladder

Habitat for Humanity's northern region housing manager Carina Dickson is excited about the new affordable homes being built in Tikipunga. Photo / Michael Cunningham

Northlanders wanting to buy their first home but struggling to save a deposit are being offered a helping hand through Habitat for Humanity.

The charity was providing the largest number of affordable houses to be built in Whangārei, with 24 homes under way in Tikipunga and Kensington, northern region chief executive Conrad LaPointe said.

It is now accepting applications for its rent-to-own scheme for these houses.

Habitat for Humanity’s progressive home ownership scheme works through a long-term partnership with whānau. The selected families pay rent on the home and this rent – minus expenses like rates – is saved for a deposit.

LePointe said that, if people were also contributing to KiwiSaver, they normally had about 50% of the value of the home after 10 years. With such a healthy deposit, banks would be keen to give them a mortgage.

The programme is aimed at working couples and families who can afford rent but cannot save for a deposit – one of the biggest problems the charity heard about, he said.

Latest data from realestate.co.nz shows the average asking price in Whangārei is $815,000, requiring a deposit of $163,000.

LePointe was clear the programme was not for everyone. Selected families had to meet a minimum income threshold, be able to afford market rent and show they could manage any existing debt.

The scheme is also different to social housing. Habitat is also a community housing provider and will soon open a further 23 homes on Maunu Rd as low-cost community rentals.

“We have plans to develop more public housing but, as an organisation, we’re very committed to getting people into owning their own homes,” LePointe said.

“To alleviate poverty properly, we have to provide wealth. We try to do that through our progressive home-ownership programme.

“For middle-income families, the only thing that’s available for us in terms of long-term financial security is having an asset that’s yours, that’s a home. We try to enable that for working families.”

Habitat for Humanity's artist's impression shows how the Tikipunga affordable houses will look once complete.

Habitat for Humanity’s programmes aimed to make houses more affordable in Whangārei and advocated for the Government to invest more in housing in Te Tai Tokerau, LaPointe said.

The rent-to-buy scheme was enabled by support from the previous Labour Government, which allowed the organisation to access cheap debt.

LaPointe hoped this sort of support would continue. “Public housing is not the only answer to the housing crisis ... We don’t need a huge amount of money to enable people to get into home ownership.”

As well as meeting minimum income requirements, families wanting to join the rent-to-own scheme must be prepared to work with a financial mentor, be already living in Whangārei and contribute some “sweat equity” into the community, such as through volunteering.

Expressions of interest are now open on Habitat’s website, with selection taking about 10 months, by which time the new houses are expected to be finished.

Denise Piper is a news reporter for the Northern Advocate, focusing on health and business. She has more than 20 years in journalism and is passionate about covering stories that make a difference.