4. KiwiBuild—Eligibility and CostsHon JUDITH COLLINS (National—Papakura) to the Minister of Housing and Urban DevelopmentKiwiBuild—Eligibility and Costs4. Hon JUDITH COLLINS (National—Papakura) to the Minister of Housing and Urban Development: Are there income limits that prospective KiwiBuild buyers will need to meet; if so what are they?Hon PHIL TWYFORD (Minister of Housing and Urban Development): Criteria for prospective buyers in the KiwiBuild scheme are still being developed. However KiwiBuild homes are modest starter homes for first-home owner-occupiers. Cabinet is yet to decide whether there will be any income requirements and if so what they may be.Hon Judith Collins: Since he has previously told the media that there are no limits would that mean that a returning New Zealand - born couple who have spent their working lives offshore and have say a $300000 deposit could be eligible for a KiwiBuild house even though they've never worked or paid taxes in New Zealand?Hon PHIL TWYFORD: I was correct in saying that there are no income limits because the decision has not been made yet. There are no income limits but on this side of the House we know how hard it is even for young Kiwis who have good jobs to buy their first home. A generation of young New Zealanders with good jobs like—SPEAKER: Order! [Interruption] Order! The Minister has answered the question.Hon Judith Collins: Thank you Mr Speaker. Would it be fair if a New Zealand - born couple who had worked all their working lives in New Zealand cannot fund the deposit for a KiwiBuild home yet their taxes are being used to subsidise those who are wealthy enough to buy one?Hon PHIL TWYFORD: We've always seen KiwiBuild as an aspirational affordable homeownership policy. That member should realise that people with jobs like teachers journalists and builders who are doing well and earning good money—SPEAKER: Order! [Interruption] Order! I am going to interrupt the Minister and ask him—I don't think he's actually addressed the question asked yet. He will start by doing that.Hon PHIL TWYFORD: KiwiBuild homes are not subsidised. With KiwiBuild we are choosing to build houses in the lower quartile; we're choosing to build the affordable homes that the private market is currently not building. There is no subsidy.Marja Lubeck: How will the Government assist first-home buyers to be eligible for and buy KiwiBuild homes?Hon PHIL TWYFORD: We have an ambitious plan to ensure that young Kiwi families can own their own homes. We've begun to tackle student loans with our first years' free tertiary education. We're increasing the supply of houses to stem the rises in rents and house prices. We're building a more productive and high-wage economy. Our Families Package will put more money in the pockets of families and we're backing higher wages through fairer employment laws—the list just goes on and on.Hon Judith Collins: Will KiwiBuild homeowners be allowed to rent out rooms for profit in their KiwiBuild home?Hon PHIL TWYFORD: As I said the rules around eligibility and income testing they are yet to be made but there's only a few more sleeps before we can give the answer to that question.Hon Judith Collins: Is he aware that Auckland Council is considering adding $50000 to the development cost for each new housing section and will this extra $50000 per section mean that KiwiBuild buyers will need extra income in order to fund their purchase?Hon PHIL TWYFORD: I am aware that Auckland Council are considering taking that action and I consider it a legacy of nine years of the former Government failing to do anything to reform infrastructure financing. The lack of finance for new infrastructure for development is the main roadblock to our cities growing. It is the main cause of expensive housing in Auckland. That Government failed to do anything about it for nine years.Hon Judith Collins: Does he agree with his Ministry of Business Innovation and Employment officials that first-home KiwiBuild buyers will need an income of $114000 a year or does he still maintain that he was right when he said $60000 a year will do it?Hon PHIL TWYFORD: I would note—let me see the source. I would note that some half of first-home buyers and renters who are earning more than $170000 can buy their homes in the Auckland housing market. There is a wide range of people who are going to be able to buy KiwiBuild houses. I'm surprised that that member is suggesting there should be income limits.