Kiwibuild - what if my income goes up after I buy the place?

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AidanS

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#239969 13-Aug-2018 15:22

If I get lucky enough to buy a Kiwibuild home with my current pre-tax single income falling under the $120k/pa bracket, but then after buying the property my income goes up (pay rise / sole trader side projects, etc) could I loose eligibility?

Or do they only care about your income at time of applying?

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#2072720 13-Aug-2018 15:26

Men in black come break your knee caps :P

Sorry no idea

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AidanS

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#2072724 13-Aug-2018 15:31

Or better yet, what if someone has $119k pa, gets a home, rents out the other bedrooms to their mates, now their income is >$120k and half their mortgage repayments are being paid for them.

mattwnz

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#2072725 13-Aug-2018 15:32

Do you mean after you have purchased it, or during the period you apply and are on the waiting list? I wouldn't think there would be a problem after you have purchased it, because a lot of people would be in that situation I would imagine . I don't think they continue to check your income after you have purchased it ! But I can see a problem if your income goes up during the waiting period, and I think that potentially could catch a lot of people out. But to be sure, you should email them, and they do actually reply to emails quite quickly.

My issue is all the personal and financial information they want people to upload via their website, and whether that info is secure, and how it is being stored and for how long. This is based on how many websites now get hacked.

alasta

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#2072774 13-Aug-2018 16:05

I also wonder what they classify as 'income'. Employer Kiwisaver contributions? Employer contributions to other superannuation schemes outside of Kiwisaver? Interest, or returns on managed funds?

And how does it work for people who receive irregular income such as annual bonuses or commission?

mattwnz

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#2072777 13-Aug-2018 16:12

alasta:

I also wonder what they classify as 'income'. Employer Kiwisaver contributions? Employer contributions to other superannuation schemes outside of Kiwisaver? Interest, or returns on managed funds?

And how does it work for people who receive irregular income such as annual bonuses or commission?

I think they look at peoples last 12 months of earnings by the looks of the form. I think it is a very crude method, and probably relies on a lot of trust. I think it does have to include interest and returns etc.

By the looks of it, the problem people may find, is that you have to keep updating the details every 6 months. This could be over a period of up to 10 years depending on where you want to buy!

Fred99

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#2072825 13-Aug-2018 16:46

To complete your application, you will need to include the following documents:

Proof of residency
Proof of income
Statutory declaration signed by an authorised person (e.g. a Justice of the Peace or lawyer)
Financial pre-approval from a bank or other lender

Lying (about your income) on a statutory declaration wouldn't be a good move.

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AidanS

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#2072879 13-Aug-2018 17:55

Fred99:
To complete your application, you will need to include the following documents:

Proof of residency

Proof of income

Statutory declaration signed by an authorised person (e.g. a Justice of the Peace or lawyer)

Financial pre-approval from a bank or other lender

Lying (about your income) on a statutory declaration wouldn't be a good move.

I'm not asking about lying, I'm asking if they only care about your income at time of application or if you need to stay below the income threshold for X period of time after buying.

What if you earn $115k, buy the house then get a bonus or pay rise that bumps you over $120k?

I know what I earn now, I don't know what I'll earn in the future and wouldnt want to get penalised unexpectedly for nudging over that number 1 year after buying the house.

sonyxperiageek

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#2072891 13-Aug-2018 19:00

You must be doing pretty well to be earning slightly less than 120k

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Fred99

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#2072892 13-Aug-2018 19:00

My reply re stat declaration was intended as a comment on the post above "I think it is a very crude method, and probably relies on a lot of trust". Yes trust - with a sledgehammer to deal with breaches.

I suggest you ask someone at Kiwibuild. Provisional application when accepted lasts only 6 months apparently, after that you need to reapply. When you reapply, I guess you have to resubmit earnings information/documents. I doubt there would be a problem if your income rose to above the threshold after you'd signed a contract to buy a house - that would be a bit crazy.

tdgeek

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#2072898 13-Aug-2018 19:14

Fred99:

My reply re stat declaration was intended as a comment on the post above "I think it is a very crude method, and probably relies on a lot of trust". Yes trust - with a sledgehammer to deal with breaches.

I suggest you ask someone at Kiwibuild. Provisional application when accepted lasts only 6 months apparently, after that you need to reapply. When you reapply, I guess you have to resubmit earnings information/documents. I doubt there would be a problem if your income rose to above the threshold after you'd signed a contract to buy a house - that would be a bit crazy.

I gather there will be a decent waitlist period, so the 6 month re application is likely to be to keep higher earners off the ladder over time, so that they drop off and others move up

mattwnz

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#2072935 13-Aug-2018 19:39

It looks like they are currently only in Auckland at the moment, so if people are outside Auckland, I not sure if it is worth applying yet until they are in other areas, otherwise I would need to reapply in 6 months time again.

Anyone have an opinion on whether these will actually be a good buy, compared to a standard home? I wonder if they will have an RV that will be significantly different to the amount they will be sold at. My worry is ghetto suburbs, and once the 3 years is up, there could be a lot of people selling, to upgrade to something better. I also worry about the build quality and what the spec s of materials and supplied appliances will be. It is a lot of money to spend.

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AidanS

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#2072945 13-Aug-2018 19:57

Fred99:

My reply re stat declaration was intended as a comment on the post above "I think it is a very crude method, and probably relies on a lot of trust". Yes trust - with a sledgehammer to deal with breaches.

Oh I understand, apologies. I want to apply legitimately, but I'm tinkering just under that threshold as an individual application, and I want to avoid any unexpected penalties if I am to nudge over after buying a place.

tdgeek:

I gather there will be a decent waitlist period, so the 6 month re application is likely to be to keep higher earners off the ladder over time, so that they drop off and others move up

I hear it's going to be a ballot draw (aka house lotto??) but yea that makes sense also. Not to mention I've heard rumours the builds are already behind schedule so even further delays potentially pushing people off the ladder (I'm really trying hard to not turn this into a politically charged post...)

sonyxperiageek: You must be doing pretty well to be earning slightly less than 120k

Indeed, but as an individual it's still a struggle to climb onto the property ladder no matter how much one cuts back on Sky TV, avocados and dining out.

mattwnz:

It looks like they are currently only in Auckland at the moment, so if people are outside Auckland, I not sure if it is worth applying yet until they are in other areas, otherwise I would need to reapply in 6 months time again.

Anyone have an opinion on whether these will actually be a good buy, compared to a standard home? I wonder if they will have an RV that will be significantly different to the amount they will be sold at. My worry is ghetto suburbs, and once the 3 years is up, there could be a lot of people selling, to upgrade to something better. I also worry about the build quality and what the spec s of materials and supplied appliances will be. It is a lot of money to spend.

First lot of builds will be in Papakura so, yes, probably not the nicest area. I agree, I am slightly concerned over the quality of the build and am following closely to see what the legal title of land will be. Town houses, body corps, or straight up fee simple with your own 300-500m2 section?

I'm also more interested in Auckland Kiwibuild Pt 2, which will be in Mt Albert, especially if that $649k for 4bed, 2 bath price tag still stands in that area with a fee simple title on a >300m2 section.

alasta

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#2072959 13-Aug-2018 20:19

It’s looking like Kiwibuild will have to be high density to keep prices down, so I would expect that most, if not all, will be unit titled.

tdgeek

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#2073042 13-Aug-2018 23:19

alasta: It’s looking like Kiwibuild will have to be high density to keep prices down, so I would expect that most, if not all, will be unit titled.

Or tiny sections? Not much in front, nothing on the side, driveway, and that even on a small plot will devote as much lawn at the rear.

I don't see an issue with quality as mentioned here, there are so many quality dramas going on, it will be kept simple in design, and elegant to a degree with some external design variations.

Are most of these going to be in subdivisions or will many be a regular neighbourhood, with a 3 house piece here, 2 down the road etc? That way you wont see a class divide going on as state housing had

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#2073044 13-Aug-2018 23:23

AidanS:

Not to mention I've heard rumours the builds are already behind schedule so even further delays potentially pushing people off the ladder (I'm really trying hard to not turn this into a politically charged post...)

Here??? Never, at least not for the first 84 seconds in any topic..... :-)

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