The “NO RENT” restrictive covenant is too restrictive for New Zealand Banks.
I contacted the five largest banks in New Zealand, and they all said no.
The$65,000.00 question is: How are buyers financing the new homes in Temple View.
Is PRI or the Church providing financing to a chosen few?
Reply from Kiwi Bank:
I’ve discussed the covenants with the head of my credit risk team and unfortunately they are entirely too restrictive for us to consider taking on one of these properties as security for a loan I’m afraid.
What the covenants do is restrict us in terms of our ability to find a buyer in the future if we’re ever in a forced sale situation with this property.
We would be more than happy to look at properties that aren’t inhibited by such stringent covenants though for you.