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.

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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. 

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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.

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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 from approximately 6% to 13% in 2023  (source realestate.co.nz and REINZ) 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.

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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, and the remaining 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.

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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