How Co-Ownership works financially
This is an outline of how Co-Ownership works in practise providing a comparison between Co-Ownership and renting holiday accommodation, allowing you to see a better way for you to own your dream holiday home.
Jack’s Point apartment
Queenstown, New Zealand
We have sold all 8 shares in our first apartment here with completion scheduled for mid 2026 and have decided to wait until this apartment is fully operational before launching our next apartment for co-ownership.
As an example a similar 3 bedroom apartment in this prestigious development would cost circa $2.5M including GST.
Determining the cost of a one eighth share in the apartment
The following items and services make up the cost of each share.
• The apartment will be fully furnished down to the finest detail by one of Queenstown’s leading interior designers. The furnishings are top quality and chosen to reflect the relaxed style of living to be enjoyed by our owners at Jack’s Point. Furnishing a 3 bedroom apartment can be achieved for a lot smaller budget however this is another benefit of sharing the costs where you can have high quality furnishings and only pay one eighth of the cost. Our budget for this is $250,000 NZD.
• Legal expenses are part of every real estate purchase and co-ownership adds a further dimension with the introduction of a Property Sharing Agreement. Included in your purchase price is preparation of an REINZ Agreement for Sale and Purchase of Real Estate, all aspects of conveyancing of your title in the apartment, the Property Sharing Agreement and access to our Queenstown Solicitors CP Law for advice to New Zealanders, Australians and Singapore residents on issues relating to buying freehold property in New Zealand.
• To reach a select audience of suitable buyers, we must undertake marketing in both Australia and New Zealand at significant cost. We must also allow for qualified real estate agents to promote and sell shares and pay appropriate commission to them, or to us if we perform this role. This is a vital part of conveying the message to you our buyers about the many benefits and advantages of co-ownership. Second Home co-ownership is by invitation, and this is crucial in ensuring harmony within the ownership group. Prospective owners must feel comfortable with us and we with them so both parties fully understand their obligations as a sharing partner before commitments from both parties can proceed. The allowance for this service is 3% plus NZ GST of 15%.
• Second Home service fee. This is for marketing and administration as well as our risk of guaranteeing settlement of the apartment regardless of any unsold shares. Any shares unsold at the settlement date will be funded and owned by Second Home until such time as they are sold. Our Service fee also includes the interest component for the deposit to secure the apartment up to 1 ½ years in advance, purchase and storage of furnishings up to 6 months in advance and the holding cost of any unsold shares.
• If you have further questions on this area of co-ownership, please contact John Russell - jrussell@secondhome.co.nz Ph NZ +64 21 854 597 Australia +61 418 722 132 or Sharon Russell - srussell@secondhome.co.nz Ph NZ +64 21 863 759 Australia +61 402 840 299