Co-Ownership Vs rental
Second Home is about practicality, affordability and lifestyle, selecting homes in unique locations and then furnishing them in the very latest relaxed style and décor.
Are you considering buying a holiday home but having trouble justifying the cost? Second Home offers a Co-Ownership option that you should consider. To compare buying a one-eighth Second Home Co-Ownership, verses renting, consider this example.
Here is an example of a comparison between Co-Ownership verses rental of a similar holiday home over a 10-year period to provide a guide only to the potential cost differences.
An Example
We have highlighted below the cost benefits of buying a titled share in a new furnished 3-bedroom apartment at Jack’s Point in Queenstown New Zealand, verses renting similar holiday accommodation.
Purchase 1/8th Share $358,000
6 weeks use every year for 10 years – total 60 weeks
7% pa medium sale price increase in Queenstown 2004 to 2024 (source realestate.co.nz)
Value of your share in 10 Years approximately $700,000
Capital Growth over 10 years approx. $342,000 having enjoyed 60 weeks use of your holiday home
Less annual expenses approx. $7,700 pa or $77,000 over 10 years
TOTAL APPRECAITION OVER 10 YEARS - $265,000
VERSES
HOLIDAY RENTAL
Renting similar holiday accommodation for $7,700 per week for 6 weeks annually over the same 10-year period costs $460,000
CONCLUSION
Co-Ownership potential capital appreciation over 10 years $265,000
Renting over 10 years costs $460,000
TOTAL GAIN
Approx $725,000 over the same 10 year period for a similar experience.
CONCLUSION
The precious activity of holiday time with family and friends can never be underestimated. We are endeavoring to provide an alternate way and a smart way, to capture those precious holiday memories whilst at the same time providing a sustainable long term real estate investment.
Please note these figures are based on assumptions and should only be used as a general guide when making your purchase decision.