affordable housing with secure tenure. QLCHT FAST FACTS Operating - - PowerPoint PPT Presentation

Helping committed residents

• f the Queenstown Lakes

District into decent affordable housing with secure tenure.

OUR MISSION

• 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

QLCHT FAST FACTS

SOURCES OF FUNDING

$17,092,836 $4,790,000 $1,550,000 Developers Crown Grants Council

THE EVOLUTION OF SHARED OWNERSHIP

Household held the major equity interest in the property, eg 70% QLCHT held a passive and minor equity interest in the property, eg 30%

Worked well when entry level prices were $500k – not $800k.

• 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.

THE EVOLUTION OF SHARED OWNERSHIP

A new ownership model for NZ – created in Queenstown…

SECURE HOME

• 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 PROGRAMME

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%

• 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
• wnership except the ability to make large

capital gains.

• House remains in community in perpetuity.

SECURE HOME PROGRAMME 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.

• 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. CHALLENGES OF SECURE HOME

Nerin Square, Lake Hayes Estate

COMPLETED 2013

Mixed tenure, Crown contributed $1m Land purchased from IZ contributions

Suffolk Street, Arrowtown

Crown contributed $1m Council contributed land Long term rentals 2 units allocated for Senior Housing

COMPLETED 2015

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 2016

Riverside, Wanaka

Developer contributed land 6 into Shared Ownership and 5 into rentals

COMPLETED 2017

Northlake, Wanaka

Developer contributed land 2 into rentals

COMPLETED 2018

Cherwell Lane, Queenstown

Developer contributed land 6 into Secure Homes

COMPLETED 2019

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.

• 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

QLCHT HOMES IN THE PIPELINE