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Affordable homes, but it won't last

Simon Collins
Affordable homes, but it won't last - Affordable Home - New Zealand - income - commercial property

Experts are backing a Government claim that New Zealand houses are affordable again - but warn that the sweet spot won't last when interest rates eventually go up.

Prime Minister John Key this week defended cancelling his party's flagship affordable housing scheme, Gateway, by saying interest costs on the average home had dropped by $200 a week since the scheme was promised before the 2008 election.

Housing Minister Phil Heatley confirmed yesterday that the scheme had been stopped completely after building only 24 houses, including 17 on the former Hobsonville air base in Auckland.

And Auckland mortgage broker Bruce Patten said a young couple such as 20-year-old Campbell Miller and his girlfriend Chantel Farrugia, who bought their Hobsonville house last October with a $181,000 Gateway loan that is interest-free for five years, could have bought the house without the subsidy at today's interest rates.


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