Keeping longstanding whānau in the village, offering returns that far exceed bank deposit rates. It is a win-win for local investment in collective house purchasing.
The Tilley Road Project
The first collective house purchase for a local family
The Paekakariki Housing Trust has brought together a local investors to collectively purchase our first house - Tilley Rd. They embarked on their 5 year loan period with the intention of earning interest comparable to similar savings plans, but in in these days of low interest, our investors are earning well above the going rate of return.
Become a Social Investor
We are now looking for “social investors" for further properties.
If you are interested in being involved in future purchases or the property's care contact us at firstname.lastname@example.org.
Purchasing Property with PHT: The basic facts
The Trust secures loans from you and the bank to purchase a property. Donations are also welcome.
Lenders aren't mortgagees and may choose to have a registered interest in the property as security.
An agreed maximum interest compounds and is paid along with the principal at the end of the loan period. Lenders can choose to donate all or part of the interest to the Housing Trust.
Because the Trust has no capital, to make this model work, it must secure 100 per cent in loans from community members.
Lenders must commit to the full period of the 5-year loan.
You get a return that is both social and financial.
What sparked us to purchase this property?
The things we treasure about Paekakariki are under threat. Many of our community enablers, young families, artists, writers, mana whenua and the elderly are struggling—with rent increases, lack of secure tenure, homes that don’t meet their needs, high house prices - and they are leaving the village.
We felt we didn’t have to just accept this and watch as our neighbours move away.
We started work to form the Housing Trust when we realised that the village was about to lose a much valued whānau, who have lived here for many years and contributed to so many people’s lives. The house at Tilley Road had been their whānau home for more than 15 years. Their landlords wanted to sell the house and there were no other affordable rental options for them in town.
The Trust managed to convince the owners to sell the house to the Trust at a reasonable price ($450,000). A generous local family purchased the home, giving the Trust one year to set itself up and buy back the house at the same price.
For the Tilley Road whānau this meant:
• Secure rental tenure for the next 5 years. Their rent serviced the mortgage and other outgoings.
• An opportunity to purchase their home in 5 years at an affordable price. A sale and purchase agreement will be completed with them. This is likely to be significantly lower than the market price due to the generosity of the current owners.
A socially-responsible investment
Why did we start with this whānau?
This whānau inspire us. We value their incredible community contribution and think that’s something worth tangibly valuing. We wanted to keep them in our village. Their plight is symbolic of the bigger problem that we are tackling. If we can reverse this situation then we will show what is possible, and we can keep building on that success.