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
This is a current property being marketed by Second Home so let’s use this as an example of how the numbers are calculated. It is important that buyers have a thorough understanding of the costs upfront so there are no surprises in the future.
Purchase Price of Apartment 6 Village Works Quarters, Jack’s Point
To buy this apartment outright in January 2025 costs $2,195,000 including GST with settlement upon completion currently estimated to be in September 2025.
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%, of the selling price (8 x $358,000) totalling $100,000 NZD.
• Second Home service fee. This is a once off service fee included in the price of your share and covers our costs of marketing and administration as well as our risk in providing an unconditional purchase guarantee upon the sale of 4 of the 8 shares on offer. This provides a guarantee to those first 4 owners and all subsequent owners, that the property is proceeding to completion regardless of any unsold shares remaining. 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