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Lower Hutt property developer and a collective of Māori-owned businesses sacrificing millions of dollars in profits to help first-home buyers

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A Lower Hutt property developer and a collective of Māori-owned businesses are sacrificing millions of dollars in profits to help first-home buyers.

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When the government launched its flagship KiwiBuild scheme – with the lofty aim of building 100,000 affordable homes in 10 years – Koru Homes founder Adrian Chooi was quick to see the potential.

He and his partners met with the local Labour MP Ginny Andersen to discuss how to meet the government’s specifications and got building consent from Hutt City Council.

However, building costs suddenly shot up 30 percent, rendering the project uneconomic and they faced a dilemma.

“We were thinking, ‘well, we’re going to build expensive homes and make more money!’. But we’ve got friends around us, and at church, who said ‘no, no, no – these people affected by the housing crisis are people like you and me. They can’t get into houses now for $800,000 or $900,000’.”

Chooi has spent the last couple of decades managing multi-billion dollar projects in New Zealand and overseas – but knows what it is like to worry about putting a roof over your head.

He grew up poor in Malaysia, first moving to Wainuiomata 30 years ago, at a time when factory closures were dumping thousands of locals onto the dole.

His first job was working in a petrol station, before training as an accountant.

He knows his way around a balance sheet – but believes profit isn’t everything.

Koru Kāinga will include 51 three-bedroom homes, 41 of which will be set aside for first-home buyers at a fixed price of $650,000, well below the market rate.

The other 10 will be put out for tender, to cover the expected cost escalation.

Chooi did not want to say exactly how much profit he was giving up – but with the median house price in Wainuiomata now more than $740,000, it was likely to add up to millions.

“We don’t want to make that public because people have been telling us we are insane, ‘why you want to sell them for that much … you’re going to go bankrupt soon!’ But that’s not going to happen because we are working with people who are well established in this industry.”

Koru Homes has arranged with a supplier to pre-purchase materials for the whole project to avoid unexpected cost blow-outs.

Priority will be given to first-home buyers who qualify for Kāinga Ora’s First Home Grant or loan and to Te Āti Awa uri, many of whom missed out on a previous papakāinga development.

The firm has partnered with a collective of Te Āti Awa-owned businesses called WaiWorx to help build the houses and market them.

WaiWorx member Anania Randall, the listing agent for CK&Co Realty, doubts many other developers are likely to follow their example.

“It’s pretty cut-throat, to be honest.

“A lot of developers are uninterested in the social component of their business, they’re interested in making profit for their company.

“This is slightly different in that we’ve come together as a community group to start with to help first home-buyers get on the ladder.”

He wants to see more Te Āti Awa uri in their own homes – and he hopes the Waiworx group will come up with solutions for that.

“We are not really interested in doing the same things over and over again. I think for things to change, you have to think differently. That’s the way forward.

Randall said the group also aimed to foster a new generation of Māori tradies, by taking on apprentices.

“You can go and work for money, but if you can’t value and do the things that help your community, I think it’s a wee bit hollow.”

Hutt South MP Ginny Andersen said Chooi and his partners deserved full credit for their commitment to providing affordable housing.

“It would be great to see more developers having a big heart and forgoing a bit of profit in order to bring affordable homes to the market. We need all hands on deck to fix the crisis.”

She said it was “tricky” to bring KiwiBuild to the market in Wainuiomata previously because there were still cheaper houses available – but that could be changing.

“The fact that property prices have increased quite a lot, it actually makes it possible to be qualifying for KiwiBuild in places that previously weren’t.”

Building on the Wainuiomata development is scheduled to start in March 2022, with the first homes possibly completed by June or July.

–RNZ

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Business

Jetstar to charge new fees for using overhead lockers for carry-on

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Jetstar will soon charge customers money for using overhead lockers on its aircraft, with prices starting from $23.

The Qantas-owned budget carrier said it was part of a change in its carry-on model, which included removing its 7-kilogram carry-on weight limit.

It would instead move to a size-based carry-on baggage model and a fee to use the overhead bins.

From 2 February 2027, all Jetstar bookings would include one underseat bag such as a backpack, handbag or laptop.

Those who needed more carry-on baggage would have to pre-purchase what the airline called Priority Carry-on.

The add-on would allow for a second larger bag for the overhead locker, and those passengers would be among the first to board.

Jetstar said the availability of Priority Carry-on would be limited, and would start at $23 one-way on selected flights and vary.

For example, Dunedin to Auckland one-way would start at $23, Christchurch to Wellington one-way would be from $28, and Auckland to Brisbane from $34.

“We know that weighing carry-on bags at the gate can be frustrating for our customers and for our crew,” Jetstar chief executive Stephanie Tully said.

“To make packing easier we’ve decided to remove the 7kg weight limit, so from February, the main thing customers will need to think about is the size of their carry-on.”

Jetstar also detailed its size limits for underseat and overhead bags.

Underseat bags would have to be up to 40 x 30 x 20cm, and overhead bags with Priority Carry-on would have to be up to 56 x 36 x 23cm.

“By giving customers an underseat bag with the option to add Priority Carry-on, we can make better use of overhead locker space, streamline boarding and help more flights depart on time,” Tully said.

“Our new carry-on baggage model provides more choice to customers while helping to keep our fares low. You only pay for what you need – travelling with less means paying less, and you can always add more if you need.”

Jetstar said there were no changes to its checked baggage allowance.

It said customers with existing bookings for travel after 2 February 2027 would be upgraded to include Priority Carry-on at no cost.

Source: RNZ

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Business

Fake ‘New Zealand-based’ sites fool online shoppers

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Consumer New Zealand is warning online shoppers to be extra aware when attempting to buy Kiwi-made following a number of reports about online stores appearing to be local, when in fact they are based overseas.

A website called Mytamariki says it sells products that “support everyday family life in New Zealand”, however the business address and website is listed as being in Hong Kong.

Reviews of the website on Facebook and Trust Pilot have claimed products on the site are also available on AliExpress.

Consumer New Zealand chief executive Jon Duffy told Morning Report websites similar to these are becoming more common.

“Unfortunately they’re on the increase and it is really difficult for consumers to tell the difference sometimes.

“There’s different ways consumers can interact with websites that are pretending to be from New Zealand, but aren’t. It could be directly through a website like the Mytamariki example, but equally through places like Facebook Marketplace, Shopify, and other platforms like that.

“There’s ample opportunity for businesses to claim New Zealand origin, but not actually be from here.”

He says there are some simple things people can do if they are unsure if a business is legitimately based in New Zealand.

“If a business is claiming to be located in a particular location in New Zealand, do a Google Maps check, see if that shopfront is actually there.

“There was a recent example of a business claiming to be based in Arrowtown when it wasn’t, and that took in a number of people, but that business certainly didn’t have its shopfront on the main street of Arrowtown.

“The domain name commissioner, which is part of Internet NZ, registers all .co.nz and .nz domain names. So if a business purports to have a New Zealand domain name, you can look up who’s behind that business through the domain name commissioner.

“And if the website’s appearing to be a .co.nz website but they’re not registered with the domain name commissioner, that is a huge red flag and you shouldn’t deal with them.”

Duffy says it is not as simple as authorities having a website taken down, given the global nature of online retail.

“If a site is actively misleading people and it’s trading through a platform such as Facebook or Shopify, you can complain. Whether they take action, you kind of roll the dice.

“It’s illegal for businesses to mislead consumers in New Zealand, but often these businesses are based overseas. So regulators like the New Zealand Commerce Commission really struggle to do anything about misrepresentations about country origin and things like that when the business is based offshore.”

Duffy said there was a difference between a store being misleading and one being run by scammers.

“Some are just outright scams. They’re looking to take money off you and they never had the product that they said they were going to sell. So that’s out-and-out fraud. But other businesses will misrepresent what they’re selling to you.

“Using that Arrowtown example, it was advertising designer New Zealand-made clothing, but what turned up was cheap, Chinese-made product that didn’t match the description. So you got something, but it certainly wasn’t what you thought you were paying for.

“And then being able to turn around and deal with the website to get a refund as you would get if you were dealing with a genuinely domestically located store, proves very, very difficult.”

“Unfortunately, consumers need to protect themselves, because there’s very little the New Zealand authorities can do,” Duffy said.

Mytamariki has been contacted for comment.

Source: RNZ

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Breaking News

Two seriously injured near Levin after ambulance, gas truck collide

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A St John’s paramedic and a LPG delivery driver have been seriously injured in a crash on State Highway 1, north of Levin.

St John’s area operations manager Gareth Collings said a rapid response unit was caught up in the crash which happened at 10.40 am near Poroutawhao, north of Levin.

“The paramedic in the rapid response unit and the driver of the other vehicle were both treated for serious injuries and transported to Palmerston North Hospital by ambulance. Our thoughts are with those impacted by this incident and we are offering support to our people who were involved,” Collings said.

St John would be “supporting police” investigating the cause of the crash.

A Genesis Energy LPG delivery vehicle was involved in the crash.

A Genesis Energy LPG delivery vehicle was involved in the crash. Photo: RNZ / Samuel Rillstone

Genesis Energy’s Ed Hyde confirmed one of its LPG delivery drivers was involved in the crash.

“Genesis has another vehicle on the way to the scene to collect the LPG cylinders and we will work with emergency services to make the site safe,” Hyde said.

Workers on a nearby site told RNZ they saw a St John vehicle travelling north with flashing lights before the crash.

St John has been approached for comment.

A reporter at the scene said workers unloaded household gas canisters from the bed of a smashed-up truck outside Lewis Farms on SH1.

The truck has lost its front wheels and the damaged cab was resting on the ground.

More than 100 vehicles were backed up at a cordon before traffic was allowed through.

~ RNZ

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