Tga idea gets US support

Former Tauranga MP Bob Clarkson has gained international support for his plan to help New Zealand state house residents own the homes they currently rent.
He suggests the houses be modestly priced - between $80,000 and $180,000.
The plan was unveiled earlier this year to help people buy the state houses they live in.



Property developer and former Tauranga MP Bob Clarkson has developed a plan to enable people to own the state houses they currently rent – for a modest mortgage.

Since announcing the plan, Bob has received interest from The Warehouse founder, Stephen Tindall, and flown to the United States to explain the idea to a congressman there, who is strongly supportive of the idea.
Bob's idea is to separate the state house and the state owned section. The former tenant can buy the house with a normal bank mortgage while the government supplies the section, rent-free. Under his proposed scheme, the new house owner will be responsible for rates and household maintenance, but there is one stakeholder still noticeable absent from the plan – the New Zealand Government.
'I want the Government to be involved and it really needs their support to succeed,” says Bob.
Many who live in state houses are kept asset-poor but his plan could give them a chance to become financially sustainable.

1 comment

Posted on 07-07-2009 13:44 | By don.sewell

It seems a grand idea but which Bank would grant a mortgage on " the improvements" alone? INot many institurions are willing to consider a mortgage on Leasehold Properties which is the equivalent. Is Bob trying to get the State to stand behind the mortgage?


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