KiwiBuild promised to deliver 100,000 affordable houses to help first-home buyers realise the Kiwi dream.
It promised to help average Kiwis into their first home.
But the income test is anything but average. The income caps are so high they may as well not exist.
A solo buyer can earn up to $120,000 a year. A couple can earn up to $180,000.
Well over twice the median income.
But in effect there is no real income cap. Only the top 8 percent won’t be able to buy these homes.
It’s a free-for-all.
It is no surprise that 6,000 people registered in the first day. Well it is as surprising as when student unions started handing out free cash and food to students and they reported increased uptake every year.
Basically it is going to be like winning Lotto, except you don’t have to pay to get a ticket and other taxpayers cover the prize.
Further there’ll be no asset checks for those buying a first home meaning so long as your income is below the caps, you could have millions locked away in assets other than housing and still be eligible to get the keys to a KiwiBuild house.
Anyone with a decent trust lawyer will be below the income threshold.
Smart young investors will see this policy for what it is – an opportunity for them to get their foot on the property ladder, exploit a government system and put them one step ahead of their peers.
There’s already more than 6000 registrations of interest. The Government is only building 1000 houses in the first year of KiwiBuild. Just 30 are under construction.
So when you look at all those factors what chance does the average New Zealander actually have at realising the Kiwi dream?
The reality is the odds are stacked against them.