A multimillionaire is giving away a large chunk of his personal fortune to help aspiring homeowners purchase their first property.
Roger Fewtrell, 75, who made his millions by running and selling Southern Hospitality, has pledged to donate $25million to help people in Dunedin, New Zealand, buy homes.
Mr Fewtrell plans to provide up to 250 people with up to $150,000 each to contribute to a deposit on a home built by his company.
His goal is to help Kiwis ‘battling to save for a deposit while the cost of living rises and are capable of servicing a mortgage.’
The homes will mostly be stand-alone houses on 400 to 500sqm sections, with some apartments also being constructed.
‘I am not the man at the bottom of the cliff doling out food parcels,’ Mr Fewtrell told the Otago Daily Times.
‘The aim of the game is to get people who are trying hard into their own house, whatever it takes.’
Mr Fewtrell is also establishing a charitable trust, inviting people to apply for home improvements like new roofs, double glazing, or heat pumps.
A multimillionaire is giving away a large chunk of his personal fortune to help aspiring homeowners purchase their first property. Pictured: Young Aussies at a music festival
The homes will mostly be stand-alone houses on 400 to 500sqm sections, with some apartments also being constructed.
People hoping to receive funds will need to complete 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 deter investors from taking advantage of the scheme, successful applicants who sell their home within three years must sell it back to Fewtrell for the same amount they paid and return the handout.
Roger Fewtrell (pictured) will donate $25million to first-time homeowners
After three years, owners are free to sell their properties and keep any capital gains.
Mr Fewtrell has hired six companies to construct the homes to avoid all properties looking the same and encourage individual ownership.
He described the cash scheme as his ‘master plan’ and ‘great fun’.
‘How many property developers want to spend the last years of their life giving their money to people they don’t know? It’s got to be silly, hasn’t it?,’ Mr Fewtrell said.
After the scheme is complete, Mr Fewtrell will still have plenty of spending money left. He owns about $10 million worth of land assets and has already given his two children an inheritance.
Mr Fewtrell has promised that any money left after his death will go to charity.
