Looking to own a home in New Zealand can feel like climbing Mount Cook, especially if you're on a tight budget. But don't fret! The Housing Foundation's Rent-to-Own (HomeSaver) Programme is here to give you a leg up! We've created this guide to give you a sneak peek at what's coming your way, including the ins and outs of the programme, financial nitty-gritty, success stories, and legal know-how.

How Does the HomeSaver Programme Work?

First up, you'll rent a home with the ultimate goal of getting the keys for good. It's as simple as that! Let's break it down:

Who's In?

• New Zealand Citizen or Permanent Resident? Check!
• First-time homebuyer? Check!
• At least one person in your household working full-time? Check!
• Debt that can be settled in 5 years tops? Check!
• Earn between $65,000 and $95,000 per year, before tax (depending on your location)? Check!

Renting 101:

• Sign up for a 5-year Tenancy Agreement.
• Your rent will amount to 30% of your overall earnings and won't be more than what the market demands.
• Brush up on your home owning skills with our education programme during this period.

Ready to Buy?

• After your 5-year stint as a tenant, you're free to purchase your home.
• You can buy it outright or switch lanes to the Shared Ownership programme.
• If your home's worth has gone up, you'll get 25% of that increase as a leg-up for your deposit.

Let's put it in perspective with an example:

• You start off with a property valued at $650,000.
• After 5 years of renting, it's worth $850,000.
• That's a tidy increase of $200,000 and you'll get $50,000 from it to line your deposit.

What's This Shared Ownership About?

• After completing 5 years as a tenant, you can opt into the Shared Ownership programme.
• The Housing Foundation will co-own your home, but you can gradually buy it out over 7 to 10 years until you have full ownership.

Numbers Don't Lie!

• As of 2022, the Housing Foundation has nestled more than 1,500 families into their own homes across New Zealand. (Source: Housing Foundation Annual Report, 2022)
• The average price tag for a HomeSaver home sits between NZ$550,000 and NZ$650,000. (Source: Housing Foundation, 2023)
• Our participants typically pocket between NZ$150 and NZ$250 a week in rent savings compared to market rates. (Source: Housing Foundation Annual Report, 2021)
• Amazingly, around 70% of HomeSaver participants have bumped up their equity share within the first three years of the programme. (Source: Housing Foundation Annual Report, 2022)

Wrapping Up

The Rent-to-Own (HomeSaver) Programme by New Zealand's Housing Foundation is a game changer! This programme is building inspiring homeownership tales across the country by transitioning renters into home owners. Through educated support, financial planning, and an innovative property deposit scheme, we're opening doors for those who thought owning a home was just a pipe dream.

To learn more and get help with your application, go straight to the source and touch base with the Housing Foundation directly or check out their official website.