Posted October 31st, 2024

Since its teaming up with BayTrust in September 2020, YouOwn has been a game-changer for families in the Bay of Plenty, helping thirty-two households into home ownership by June 2024.

The programme is designed to solve the deposit gap (particularly for first-home buyers) by taking a small ownership stake in the property at a cost lower than the interest rate on a home loan. The property purchased can be an existing house or new build home .

After five years, homeowners can use their equity to buy out YouOwn’s share, meaning they own their property outright. As money is paid back to YouOwn, it is recycled into the program to assist more -home buyers.

Thanks to an additional $1.5 million investment from TECT and Trust Horizon, even more families in the Bay of Plenty have the opportunity to own their home, making this initiative a resounding success in the region.

Ōpōtiki College teacher Alex Le Long is a prime example of how life-changing YouOwn’s assistance can be. Alex left Auckland a decade ago with the hope of one day being able to buy her own home. However, 12 years of KiwiSaver contributions still weren’t enough to make it happen. “The journey hasn’t been easy,” says Alex. “Prior to YouOwn, the bank was saying to me ‘no you can’t do this.’ But joining with YouOwn, I had immediate help.”

Nigel Spratt, Executive Director of YouOwn, emphasises that the biggest barriers to homeownership are the inability to save a large enough deposit and personal debt. “YouOwn provides good, hardworking Kiwis with an opportunity to get into their dream home or to get onto the housing ladder,” he says. “Many people can afford to service a mortgage but just can’t get past that 20% deposit hurdle with the bank. That’s where YouOwn can help.”

The Bay of Plenty has experienced strong population growth, largely driven by recent migration from Auckland. This growth has placed additional demand on the region’s housing market.

Housing affordability remains an issue across many regions in New Zealand. Data from the Ministry of Housing and Urban Development’s (HUD) dashboard Housing Affordability Dashboard highlights the challenges faced by Bay of Plenty home buyers, including the ability to save for a deposit. The region faces affordability pressures, which illustrates the growing need for innovative home ownership solutions.

You Own’s co-ownership model presents a practical solution for buyers, particularly in high-demand regions like the Bay of Plenty, where saving a deposit remains a significant challenge. This innovative approach offers a pathway to home ownership with only a 5% deposit, helping more New Zealanders into their own homes amidst ongoing market uncertainties.

 

If you’re interested in co-ownership with us, you probably have a few questions about the process. Check out our FAQs

Or if you want to see if your eligible or ready to apply now click here.