What is the Secure Homes Programme?

Secure Homes is an assisted ownership programme

The objective of Secure Homes is not only to provide quality, affordable housing, but also long-term housing stability and security in the same way that freehold home ownership does.

Relatively new to New Zealand, the Secure Home model was developed by the Queenstown Lakes Community Housing Trust and has been operating successfully there for a number of years. The model is popular overseas.

How does it work?

The qualifying household buys the home at roughly the cost to construct. If it cost the developer $400,000 to build the home, that’s around about what the purchaser pays.

Bridge Housing owns the land on which the home sits.

The household buys a 100 year lease to the land – this is set at well below market rates and only increases at the CPI rate each year.

The household pays its mortgage on the home, rates, insurance and the ground lease – in most cases, this works out to be less than a rental equivalent in the same market.

When the household decides to leave the home, it sells the house back to Bridge Housing at the original price, plus CPI. This means the household has the opportunity to get back the money it has paid into the property during its time in the home, plus any increases in the value.

Bridge Housing then sells the home to the next qualifying household.

Who is eligible?

To be eligible to apply for Secure Home you must first meet the following basic criteria: 

• First time home buyers (or potential for ‘second chance’ buyers).
• The property must be used exclusively as the household’s primary residence and must not be vacated by the household for any more than four weeks over a 12 month period.
• The applicant’s combined household income must not exceed $150,000 p.a. (before tax).
• At least one person from the household entering into the Secure Home Agreement must be a New Zealand resident or citizen.
• Once the above eligibility criteria have been met, you must then show that you can meet the specific financial requirements of the Secure Home Programme, which includes bank approval for a home loan.
• The Secure Home must be the resident’s only property; if you already own a home or land, you are ineligible for the Secure Home Programme.