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Welcome to a new way to holiday and invest in real estate at the same time. 
 

Sharing costs for holiday accommodation and many other things in life has been common practice for decades so why shouldn’t it be the same for buying and running a holiday home.  

We have designed a practical and affordable way to fulfil the dream of owning a holiday home and creating those amazing memories of family holidays that become such an important part of our lives. 

 

Second Home can make that dream become an attainable reality through our Holiday Home co-ownership model. We select the most popular holiday destinations and buy special properties to suit the most discerning of owners. This ownership model means your name is on the title and you own your 1/8th share in the home providing you with an amazing fully managed holiday home and a saleable real estate investment without the work normally associated. 

 

A Fully Managed Experience is part of the service provided when you own co-ownership with us. Owning a holiday home outright also means responsibilities. Rentals and maintenance are a constant and this can diminish the enjoyment of owning outright, not to mention the initial capital expenditure.

Second Home owners John and Sharon Russell have 25 years experience in managing co-ownership luxury boats, a villa in a small town in the middle of Italy and a new holiday home recently completed in Queenstown. With this experience and their experienced team and home manager in Queenstown, we can guarantee the best possible experience for our owners. We appreciate the fact that without our owners we do not have a business and so we make each and every co-owner with us our first priority. We also like to have interaction between our owners, as much or as little as you prefer and to this end we will organize events from time to time where you will have the opportunity to meet fellow owners.      

 

Each owner has exclusive use of their home for six weeks each year and shares in the costs of running and managing the home. All you do is pre book your weeks, enjoy the anticipation of going on your next holiday, arrive and enjoy. At the end of your stay, simply pack up and start planning your next visit. All the chores of cleaning and maintenance are taken care of. 

The home always feels like your home because it is, and for this reason it will never be offered for rental - owners only. 

 

UNDERSTANDING THE NUMBERS

 

Formal Co-Ownership of a holiday home is only just becoming popular in Australia and New Zealand. It has been successful in Europe and America for some time now and so it may seem complicated at first. Second Home founders, John and Sharon Russell, pioneered the concept of co-ownership of luxury boats in Australia in 1999, bought into a co-owned villa in an Italian village in 2013 and built their own co-owned holiday home in Queenstown New Zealand in 2023 which was featured on Grand Designs NZ. It is with this history and experience that we have introduced Second Home to Queenstown. 

The following explanation provides a better understanding of how the numbers work and how co-ownership may provide a practical way for you to own that 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 a current 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 later on.

Purchase Price of Apartment 3 Village Works Quarters, Jack’s Point – To buy this apartment outright in January 2024 costs $1,995,000 including GST with settlement upon completion currently estimated to be in December 2024. It is worth noting that Jack’s Point real estate increased in value by approximately 6% in 2023 so it is reasonable to assume, based on the history of Queenstown real estate and the current outlook, that this price will increase before settlement.

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 $230,000 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. We have 25 years experience in preparing these documents and have prepared an uncomplicated and effective agreement which current owners have agreed covers everything. 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. We strongly recommend having an independent solicitor for your own advise as well.

  • To reach a select audience of suitable buyers, we must employ qualified real estate agents and pay appropriate commission to them for this service. Our agents are 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. Our agents introduce prospective clients to us and we take over from there to ensure suitability. Their cost for this service is 3% of the selling price ($322,000 x 8) plus NZ GST of 15%, totalling $88,000NZD.

  • 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 as soon as we have those first 4 co-owners identified. This provides a guarantee to those first 4 owners that the property is proceeding to completion regardless of the remaining 4 shares being sold or not. Settlement is scheduled for December 2024. Any shares unsold at the settlement date will be funded and owned by Second Home until such time as they are sold.

 

If you have further questions on this area of co-ownership, please contact:

John Russell, email: jrussell@secondhome.co.nz Ph NZ +64 21 854 597 Australia +61 418 722 132 or Sharon Russell email: srussell@secondhome.co.nz Ph NZ +64 21 863 759 Australia +61 402 840 299

Annual costs of ownership

 

  • As with any home or holiday home there are always annual costs of ownership to consider.
    Jack’s Point is a well-regulated community and there are levies payable for the upkeep of common grounds and the internationally renowned golf course, rated number two in New Zealand by NZ golf magazine in 2020, on the shores of Lake Wakatipu. 

  • These annual costs of ownership are managed by Second Home and are divided equally between all 8 owners and paid monthly. Owners have access to all monthly accounts and you only pay 1/8th of the actual cost of each service. We have an experienced local home manager who takes care of the day to day running of your holiday home and we look after the calendar of use for all owners and all administration and owner care. 

  • To ensure a consistent standard of cleanliness, the apartment is professionally cleaned at the end of each stay and this cost is passed on to the owner applicable. This also removes the burden of cleaning from all owners and adds to your enjoyment of your holiday. Our cleaning professionals charge $63 per hour inclusive of GST for this service and their time is based on the amount of work required. If you have only used one bedroom, one bathroom and the apartment is generally clean, the fee will be less than if the whole apartment has been used.

  • Any substantial expenses like the replacement of a furniture item in the future must be agreed by a majority of 75% of the owners with the cost being divided 8 ways.

  • An annual budget is included below as a guide to the estimated monthly costs per 1/8th share owner. Please note these figures are based on the current information available and are an estimate only. 

Co-Ownership vs Rental

 

Second Home is about practicality, affordability and lifestyle. We choose homes in unique locations and fit them out in the very latest style and décor to suit a relaxed holiday lifestyle. 

 

We have prepared 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 of the potential cost differences.

How it Works

  • Who owns the holiday home?
    Each co-owner is listed on the title as the owner of a 1/8th share of the home as tenants in common. A maximum of two owners can own each share. Your share is owned independently of the other owners, allowing you to sell your share at any time. Unlike timeshare arrangements, you own the real estate asset and can benefit from any appreciation in value. The title of each co-owner must remain unencumbered to protect all owners.
  • Who can use the home?
    This is your holiday home and it is built and furnished to accommodate you, your family and friends during your allocated weeks. The nominated owner is responsible for the home during their allocated time. Owners are not permitted to rent the home.
  • How are prospective owners evaluated?
    We take evaluating prospective owners very seriously to ensure we have responsible owners who will treat the home, their partners, and their neighbors with the utmost respect. Each new owner must undergo an evaluation process to become a co-owner in the home. Our years of experience in the share boating industry as well as our share home in Italy has provided us with the experience to chose partners who we feel will treat their home and their partners in the home with the utmost respect.
  • Who is eligible to co-own a holiday home with Second Home?
    We are inviting eight responsible and respectful families who are Citizens of New Zealand, Australia, or Singapore to co-own our exclusive holiday homes located in New Zealand, Australia and Italy. Ownership of residential real estate in New Zealand is limited to residents of New Zealand, Australia and Singapore. Our Italian properties in Mercatello and Venice, are open to residents of most countries to purchase including but not limited to the USA, Canada and Europe.
  • How many co-owners will there be?
    Each holiday home has a maximum of eight co-owners with the opportunity to own more than one share. As per the “Property Sharing Agreement,” each owner is entitled to use the home for private use for six weeks annually, Monday to Sunday, via on our online calendar. This legal documentation is designed to ensure all owners use the home respectfully and to protect you and your partners in the home.
  • What is included in your home?
    Your home is furnished with everything you would expect in a luxuriously appointed holiday home and more. Our Interior Designers furnish the homes with a tasteful and relaxing lifestyle furniture package suitable for the level of quality and lifestyle that our owners expect. A full schedule of finishes, fixtures, fittings, and furnishings is available for each home.
  • Rental of the Homes?
    To maintain the exclusivity of ownership, our homes are reserved for use by co-owners, their family, friends, and invited guests only. We do not allow rental of the homes to maintain the privacy and luxury experience that we provide for our owners.
  • Annual Costs?
    We believe in transparency and fairness, and that’s why we list all the known costs of running the home including rates, insurance, electricity, Wi-Fi, window cleaning, management fees and other expenses. These costs are then divided between the eight co-owners. To help our owners plan ahead, we provide an annual budget for each home and the fees are paid monthly.
  • Insurance?
    We want a worry free experience for our owners. We take the safety and security of our homes and co-owners very seriously, and that’s why our homes are comprehensively insured, including contents, with all co-owners named on the policy. In the event of a general insurance claim, all owners would share the excess equally. However, if a particular owner is responsible for the claim, such as breaking a window with a snow ski, that owner would be responsible for the excess.
  • Payment for your ownership share in the home?
    We understand that buying a home is a significant investment, and that’s why we offer a flexible payment plan. Co-owners pay a $2,000 refundable deposit when submitting an Expression of Interest form, and a further deposit up to 10% of the value of their co-ownership is paid upon signing the legal documentation. The balance is paid upon completion of the home. All purchase monies are paid into our solicitor’s trust account and released upon issue of the title.
  • What is the “Agreement for Sale and Purchase of Real Estate”?
    The “Agreement for Sale and Purchase of Real Estate” is the REINZ contract that all co-owners sign, as well as further legal documentation, to formally include their buying entity on the title of their home.
  • What is the “Property Sharing Agreement”?
    The “Property Sharing Agreement” is a comprehensive binding document that sets out the rights and obligations for all aspects of the shared home. It includes details of the booking system and online calendar, conditions of use, and how the property is maintained and managed.
  • Resale of a share?
    We understand that circumstances change, and that’s why co-owners can sell their share in the home at any time after the first 12 months. Before selling, co-owners must first offer their share to the other owners. If no owner takes up the offer, the share can be sold privately, either through Second Home or an independent agent. We will assist our co-owners by providing a current market value of their share based on its original purchase price, previous sales and current market conditions. Any new owner must be approved for suitability by the other owners and the proceeds of sale of the ownership share after selling expenses belong to the co-owner.
  • Allocation of time annually?
    A calendar of use is prepared by Second Home 6 months in advance of each 12-month period. This allows owners to lock in their 6 weeks holiday time well in advance. To allocate these weeks, we ask for your first and second preferences for your first two weeks. Once this has been established and posted on the calendar, we ask for your preferences for your second two weeks, and then your last two weeks. You can choose one week at a time, two weeks in a row or three or four weeks in a row where available. To ensure all owners get an equal share of peak winter weeks and summer weeks we have made provision for each owner to have two weeks during a typical ski season, mid June to mid October, and one week during the summer/school holiday period in December and January. Once your weeks are allocated you have the flexibility to swap weeks by agreement with your fellow owners and secure additional time during maintenance weeks. Our web site www.secondhome.co.nz has an owner’s section and a page specific to your home which will feature your online calendar. See our blog explaining this in detail. Or go to our Book Your Time page...
  • What if I can’t use my week?
    Despite best intentions, plans can sometimes change, and so if you are unable to make it to your holiday home for your allocated week you simply go to the owner’s section of the website and notify your co-owners. If another owner can take your week, you can swap one of their weeks or they owe you a week. If you are not able to swap, you lose this week however we would endeavor to carry out any maintenance work required to free up maintenance weeks for the owners to use.
  • Future sale of the Home?
    While the future sale of the home is not contemplated, if at any time 6 of the 8 registered owners decide to sell the property, after reasonable consultation it must be sold. If the home is to be sold, it must first be offered to the existing owners. If a sale to the owners is not successful, the home must be valued by a local valuer and then listed for sale with an agreed agent. The proceeds of sale after agent’s commission and selling expenses is to be divided equally between the eight co-owners.
  • Registered owners?
    The person, persons or entity registered on the title is the legal owner of the share in the home and will be treated as the absolute owner of that share. If the co-ownership is registered to two people, one person must be nominated for all communications. That person is the duly authorized agent and representative of the co-ownership share.
  • What do I use the website for?
    Our web site www.secondhome.co.nz has a secure owners section with a specific page for each Second Home. You can use this at any time to view photos of your home under construction, log into the calendar for your home, communicate with your fellow owners, upload stories and share recommendations of special places, events, restaurants, services or activities in the area.
  • Owners Code of Conduct?
    As a co-owner in your home, you have a responsibility to be a good partner and neighbour. Owning a holiday home is a privilege that comes with a commitment to being a respectful and considerate owner. We are committed to protecting and enhancing the experience of our fellow owners and contributing positively to the local community.
  • Introduction Party upon Completion of the Home?
    We understand that the completion of your new holiday home is an exciting time, and we want to share this experience with you. As such, we will host an owners' party to introduce you to your new home and fellow co-owners. We encourage your participation in this event and look forward to sharing the adventure of your Second Home ownership with you.

Co-Ownership Legal Structure

We have been very careful to provide owners with the utmost security when owning co-ownership in a Second Home holiday home. There are no companies or trusts and this is a 100% ownership program.

The title of each Second Home property is divided into eight owners and each co-ownership share can be owned by up to 2 people.

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