Path2Own is an innovative home ownership solution designed for New Zealanders looking for a flexible, affordable way to own their home.
The unique model allows you to lease a property under a perpetual lease agreement while providing the option to purchase the freehold at any time. This means you can live in your home, build equity, and transition into full ownership on your own timeline.
A flexible solution for home ownership
Ongoing Lease with the Flexibility to Purchase the Freehold
Start living in your home with a long-term land agreement and buy the freehold when you're ready. This flexible option provides security and control over your journey to full home ownership
Affordable Entry to Home Ownership
Move into your home for an affordable price, with manageable terms that let you live comfortably while you plan your financial future. Path2Own offers a cost-effective way to start your home ownership journey.
Complete Control and Flexibility to Full Ownership on Your Terms
You choose when to transition from long-term land use to full ownership. With Path2Own, you have the flexibility to make decisions based on your needs, giving you full control over your home ownership timeline.
Designed for modern buyers, Path2Own removes the traditional barriers to home ownership by providing a flexible and accessible path, whether you're starting out or planning for the future.
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The below property is available using Path2Own to make homeownership a reality
Luxury Living with Flexible Ownership
3 Bed | Hillcrest, North Shore City
Discover the perfect blend of luxury and flexibility in Hillcrest, North Shore, with the unique opportunity to choose between leasehold or freehold ownership. This stunning residence features three spacious bedrooms, two bathrooms, and a private car park.
Every element of this home is designed with sophistication and comfort in mind, offering an elevated living experience. Wake up to breathtaking natural views and enjoy a harmonious balance of elegance and functionality-this is more than just a home; it's a statement of refined living.
Situated in a vibrant neighbourhood, you'll have easy access to top schools, shopping centres, and recreational facilities. What sets this property apart is its flexible ownership options:
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FAQs about Path To Own
What is Path2Own?
Path2Own is a way for first home buyers in Auckland to get onto the property ladders earlier. Buyers purchase the house and lease the land until they are ready to purchase that portion in the future.
Wait, aren’t leasehold properties bad?
Leasehold properties aren’t liked because the lease continues to increase over the years. Costs for the lease continually increase with no option to get out of those increasing costs without selling the property.
What’s different about Path2Own?
With Path2Own, the house owners (you) have the option to purchase the land at any point for the preset agreed price. At this point, you will own the land and the house and the property becomes a standard freehold property.
How much is the lease?
The cost of the lease is fixed at 5% per annum of the lease value (less than the cost of the mortgage interest rates, at the moment!).
How much can the lease value increase by? I’ve heard of horror stories of leases increases by multiples.
The annual lease cost for Path2Own is capped at a 4% increase per annum. If the land is valued at $400,000 at purchase, then next year the lease value will be $416,000 (and you will be paying 5% of that as a lease payment).
What if the land has increased in value by more than 4% per year when I want to purchase the land? How much will I pay?
In the example above, after one year, the agreed land buyout value has increased by 4% to $416,000. If the actual value of the land has increased to higher than that - for example, $430,000 - you will still only pay the $416,000 to purchase the land. The other equity (in this example $14,000) is yours at no cost.
Can I sell the property at any point?
Yes, you can either sell your ownership in the house as a continued leasehold or sell the entire property as a freehold property (effectively exercising your option to purchase the land at the same time as selling the entire property).
Do the big banks lend on this type of property?
A freely convertible leasehold property is a new model. We have had feedback that the big banks are willing to lend on this.
How much deposit will I need for this?
You will need 20% of the house portion only (not the entire property). If the house portion is, for example, $700,000, you will need $140,000. This can be made up of savings, KiwiSaver (subject to the first home buyer withdrawal rules) and gifts or loans from family.
Additionally, because you are borrowing at 80% LVR or less, you will get the best rates from the bank. No Low Equity Fees or Low Equity Premiums from the banks.
Who do I need to talk to for more information about this?
Submit your details below to talk to one of our team. We’ll get you the information for you to look over. We recommend you get legal advice on the contract to make sure you’re happy with everything.
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Disclaimer: The information on this page is for general guidance only and does not constitute financial, legal, or real estate advice. Path2Own may not suit all circumstances, and we encourage individuals to conduct their own due diligence and consult with appropriate professionals before making any decisions.