A Dunedin millionaire is dedicating $25 million of his personal wealth to help people buy homes or make essential improvements.

Roger Fewtrell’s goal is to provide up to 250 first-time buyers with around $100,000 each for deposits on affordable homes he plans to build across the city.

The Otago Daily Times reported that the recipients of Fewtrell’s donation would go through a selection process.

“I’m not doling out food parcels. The aim is to help people who are trying hard to get into their own house,” he said.

He wants to assist those “battling to save for a deposit while the cost of living rises and are capable of servicing a mortgage.”

The amounts given could vary from $50,000 to $150,000 depending on need.

Fewtrell, 75, is also establishing the Dunedin Homes Charitable Trust, inviting people to apply for improvements like new roofs, double glazing, or heat pumps.

In January, Fewtrell announced plans to develop about 60 affordable homes across the city, selling them $100,000 below market value.

He told the Otago Daily Times his company, DRDL2023 (Dunedin Residential Developments Ltd), now aims to build four times as many homes.

The homes will be sold at market value, but he decided to give away cash from his wealth to help people purchase his homes, ensuring affordability.

“I’ve looked at all the options, but the only sensible way is for me to donate the money,” he said.

Fewtrell plans to build more homes by subdividing existing sites. Homes will mainly be stand-alone on 400 to 500 sqm sections, with some apartments also being built.

A tender for infrastructure for his development of 18 homes in North East Valley is imminent. Six building firms will construct houses on the site, creating variety and a sense of individual ownership.

Applicants for Fewtrell’s house deposits must complete a form similar to a mortgage application, demonstrating they have a job, can pay a mortgage, and have saved some money towards the deposit.

If a homeowner sells within three years, they must sell back to Fewtrell for the purchase price and return the handout. After three years, they can sell freely and keep any capital gain.

Fewtrell described giving away his fortune to help people have healthy, affordable homes as his “master plan and great fun.”

Fewtrell told the ODT he still has $10 million in land assets and has already provided for his two children.