Shared home ownership programme
What is it all about?
Shared home ownership programmes provide support for people to purchase their own home by sharing the cost. It is designed for families who want to own their own home, but cannot afford to on their own.
Shared home ownership programmes are not new in New Zealand. Dwell’s shared home ownership programme is based on these long running, successful programmes and is the first to operate in Wellington.
How shared home ownership works
It is really quite easy.
- You buy into the home at a percentage of the market price, between 70% and 90% based on what you can afford (e.g. 70%) - the share you can afford will be determined by an analysis of your finances.
- Dwell owns the remaining share of the home (e.g. 30%) and acts as a silent co-partner.
- You raise a deposit and obtain mortgage to secure a loan for your share. Your deposit can come from KiwiSaver, your savings or a mix. You are responsible for mortgage repayments plus all other costs of ownership (e.g. rates, insurance, maintenance).
- You will increase your share over time in 5% steps to 100%.
- When you decide to move on, you sell your share (e.g. 70%) back to Dwell based on an independent valuation - or if Dwell does not wish to buy it, you can sell the property on the open market.
- Any increase or decrease in value of the property at the time of sale is shared in proportion to ownership (e.g. 70% you, 30% Dwell).
This is an example of how it might work.
Shared home ownership availability
Currently we have no properties available under the SHO scheme.