OUR MISSION Helping committed residents of the Queenstown Lakes District into decent affordable housing with secure tenure.
QLCHT FAST FACTS Operating 12 years 6 Trustees and 1.9 FTE staff Net Assets = >$22m Shared Ownership total= 124 Rent Saver total = 10
QLCHT FAST FACTS Affordable Rental total = 30 Senior Housing total = 4 Secure Home total = 6 Total households helped = 174 Eligible households on waiting list currently = 584
SOURCES OF FUNDING $1,550,000 Developers Crown Grants $4,790,000 Council $17,092,836
THE EVOLUTION OF SHARED OWNERSHIP QLCHT held a passive Household held and minor equity the major equity interest in the property, interest in the eg 30% property, eg 70% Worked well when entry level prices were $500k – not $800k.
THE EVOLUTION OF SHARED OWNERSHIP Negative stakeholder reaction to households making large windfalls. No interest return, or ability to borrow against, QLCHT’s passive investment. Great programme for employers or parents! QLCHT actively seeking to share IP for wider community benefit.
A new ownership model for NZ – created in Queenstown… SECURE HOME
SECURE HOME PROGRAMME Household buys leasehold title with bank mortgage and deposit. House purchase price = cost to construct. Household pays ground rent to QLCHT of 1.5% of land value, e.g. $86 pw on $300k section. QLCHT retains freehold title on behalf of the community in perpetuity. Bank has security against leasehold title for purchaser’s mortgage to be registered against.
SECURE HOME PROGRAMME 100 year lease with ground rent increasing annually with CPI. Resale price of house capped to CPI and can only be sold back to QLCHT. New household buys in at same price QLCHT bought back at. Improvements to property must be approved by QLCHT, and can be added to resale price. Bank requires 20% deposit.
SECURE HOME EXAMPLE 3 bedroom pilot house at Shotover Country which cost $350k to build: Mortgage $280,000 Deposit $ 70,000 Upfront purchase price: $350,000 Annual Weekly Mortgage repayments*: $19,642 $378 Rates, insurance & maintenance: $ 5,200 $100 Ground rent (1.5% on $300k section): $ 4,500 $ 86 TOTAL $29,342 $564 $564 weekly compared to median rent of $750 for 3 bed SECURE HOME VS. RENT = NO BRAINER! *Repayments on a $280k mortgage over a 25 year term @ 5.0%
SECURE HOME PROGRAMME Resale example: Upfront purchase price = $350,000 Inflation = 10% pa over 5 years Uplift after 5 years = $350k x 10% = $35,000 Resale price = $385,000 New purchaser price = $385,000
SECURE HOME PROGRAMME Household has all the benefits of home ownership except the ability to make large capital gains. House remains in community in perpetuity. It’s a nest – not a nest egg!
SECURE HOME ELIGIBILITY Hold permanent NZ residency or citizenship. Be in full time employment. Lived in the District for at least 6 months. Meet income cap and asset test. Can’t own other property.
CHALLENGES OF SECURE HOME Historical bank resistance to lending on residential leasehold. Public perception of leasehold in NZ. More challenging to transition to independent housing. 20% deposit requirement is still out of reach for most households.
COMPLETED 2013 Nerin Square, Lake Hayes Estate Mixed tenure, Crown contributed $1m Land purchased from IZ contributions
COMPLETED 2015 Suffolk Street, Arrowtown Crown contributed $1m Council contributed land Long term rentals 2 units allocated for Senior Housing
COMPLETED 2016 Shotover Country Developer contributed land QLCHT spent $2m on subdivision work 44 houses built in 2016 by 3 building firms Mixed tenures including 11 rentals
COMPLETED 2017 Riverside, Wanaka Developer contributed land 6 into Shared Ownership and 5 into rentals
COMPLETED 2018 Northlake, Wanaka Developer contributed land 2 into rentals
Cherwell Lane, Queenstown COMPLETED 2019 Developer contributed land 6 into Secure Homes
QLCHT’S FUTURE Goal of 1000 homes in 10 years. 60% Secure Home and 40% rentals. Increased Senior Rental Housing as demand grows. All Council-funded land must be retained by QLCHT ownership in perpetuity.
QLCHT HOMES IN THE PIPELINE Onslow Road SHA, LHE = 13 Arthurs Point SHA, = 9 Hawea SHA = 40 Bright Sky SHA, Wanaka = 28 Jopp St, Arrowtown = 65 Toru apartments = 50 Coneburn SHA, Queenstown = 60
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