The Government is fully focused on selling 8000 existing state homes over the next three years and anyone can buy them. The homes must remain as stock for social housing and managed by registered community housing providers.
There may be some exceptions however in areas where a more mixed housing approach is desired and this may result in some of the existing state homes becoming privately owned and occupied.
The sale of these homes frees up cash for housing and capital projects including more investment to build more social housing stock for the country.
The new builds will also be sold off and private ownership of social housing stock lifted from 5 percent to 20 percent. The Government’s aim is to build up to 1000 new homes a year and in a news item on NZHerald, Social Housing Minister Ms Paula Bennett said she thought they could do better than that.
Property investment is alive and well and the Government is providing housing stock. The homes are not likely to be sold for market value due to the condition that they remain social housing. The guaranteed rent will interest investors says Matt Power of Property Experts. Matt actively works as a property buyer and sales agent so he is well aware of the current stock available for investors particularly in Christchurch.
While the change is not overly welcomed by social housing tenants, contracts managed by registered community housing providers will ensure they are looked after irrespective of who owns the properties. In the same NZHerald news item Fletcher Housing said private developers would be interested in forming consortiums with community agencies.
This blog article was written for PropertyBlogs by Mobilize Mail.