Originally Posted by
minimoke
..... Really - is home ownership a dream we should be spruiking if a person is up for a $532,000 mortgage for a 75% stake in a property. Seriously - I couldn't sleep at night with that kind of debt on that kind of equity. For a start its about $500 a week in interest payments. Then there is rates and insurance and maintenance on top.
Then there's the issue of risk. Why should the NZ tax payer, via the govt, expose themselves to a $190,000 risk that a private individual isn't prepared to carry themselves. That risk is enhanced because I doubt the maintenance part will be done on the property thus it becomes a depreciating asset.
(And thats comments from me without me doing any due diligence on the First Home Buyers Club - which has a few of my red flag of warning sensors tingling))