A multimillionaire is donating a large portion of his personal wealth to help first-time homeowners purchase their first home.
Roger Fewtrell, 75, who made millions running and selling Southern Hospitality, has pledged to donate $25 million to help people in Dunedin, New Zealand, buy a home.
Mr. Fewtrell plans to give up to 250 people up to $150,000 each as a down payment on a home built by his company.
His aim is to help Kiwis ‘who are struggling to save money for a deposit as living costs rise and still be able to pay their mortgage.’
The homes will be mostly detached houses on plots of 400 to 500 m². Some apartments will also be built.
“I’m not the guy who’s at the bottom of the cliff handing out food parcels,” Mr Fewtrell told the Otago Daily Times.
“The aim of the game is to get people who are trying their best into their own homes, no matter what the cost.”
Mr Fewtrell is also setting up a charity where people can apply for home improvements such as new roofs, double glazing or heat pumps.
A multimillionaire is giving away a large chunk of his personal fortune to help aspiring homeowners buy their first home. Pictured: Young Australians at a music festival
The homes will be mostly detached houses on plots of 400 to 500 m². Some apartments will also be built.
People who want to receive money must fill out a form with questions similar to those on a mortgage application through Mr Fewtrell’s charity.
Applicants must demonstrate that they are employed, can afford a mortgage, and have savings to make a down payment.
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 and repay the benefit.
Roger Fewtrell (pictured) donates $25 million to first-time homebuyers
After three years, owners may sell their property and retain any added value.
Mr Fewtrell hired six companies to build the homes, so that not all the properties look the same and to encourage individual ownership.
He described the cash arrangement as his “master plan” and “a lot of fun.”
“How many developers want to spend the last years of their lives giving their money to people they don’t know? That must be crazy, right?” Mr Fewtrell said.
After the plan is completed, Mr. Fewtrell will still have plenty of money to spend. He owns about $10 million in land and has already left an inheritance to his two children.
Mr Fewtrell has promised that any money left after his death will go to charity.