A billionaire is giving away a large portion of his personal fortune to help aspiring homeowners buy their first property.
Roger Fewtrell, 75, who made millions running and selling Southern Hospitality, has pledged $25 million to help people in Dunedin, New Zealand, buy homes.
Mr Fewtrell plans to provide 250 people with up to $150,000 each to contribute towards a deposit on a home built by his company.
Its aim is to help Kiwis “struggling to save for a deposit as the cost of living rises and be able to afford a mortgage”.
The housing will mostly be detached houses in sections of 400 to 500 square metres, and some apartments will also be built.
“I’m not the guy standing at the bottom of the cliff handing out food parcels,” Fewtrell said. Otago Daily Times.
‘The goal of the game is to get people who work hard to get their own home, no matter what the cost.’
Mr Fewtrell is also setting up a charitable trust, inviting people to apply for home improvements such as new roofs, double glazing or heat pumps.
A billionaire is donating a large portion of his personal fortune to help aspiring homeowners buy their first property. Pictured: Young Australians at a music festival
The housing will mostly be detached houses in sections of 400 to 500 square metres, and some apartments will also be built.
People hoping to receive funding will be asked to fill out a form with questions similar to a mortgage application through Mr Fewtrell’s charity.
Applicants must prove they have a job, can pay a mortgage and have some savings to contribute to a deposit.
To discourage investors from taking advantage of the scheme, successful applicants who sell their home within three years must resell it to Fewtrell for the same amount they paid and return the money.
Roger Fewtrell (pictured) will donate $25 million to first-time homeowners
After three years, owners are free to sell their properties and keep any capital gains.
Mr Fewtrell has contracted six companies to build the homes to prevent the properties all looking the same and to encourage individual ownership.
He described the cash plan as his “master plan” and “a lot of fun.”
“How many property developers want to spend the last years of their lives giving their money to people they don’t know? It must be nonsense, right?” Fewtrell said.
Once the plan is complete, Fewtrell will still have plenty of money to spend. He owns real estate worth about $10 million and has already left an inheritance to his two children.
Mr Fewtrell has pledged that any money left over after his death will go to charity.