A Queenstown developer is pitching his second apartment complex at locals wanting an affordable home – and a smaller mortgage.
Tim Medland – with two locally-based French investors – is pre-selling a 42-unit complex called La Residence du Lac on a Frankton Road lakefront site below Goldfields.
“We think there are younger couples that don’t want to be saddled with a $450,000-$500,000 mortgage to live at Lake Hayes Estate, who’ll be happier getting a $250,000 mortgage and being on the lakefront in a smaller place,” Medland believes.
Pricing is aimed at locals, Medland says – especially singles and couples who, with a 15 per cent deposit, can pay off a weekly mortgage for what they’d otherwise spend on rent.
The new complex comprises 40 one- and two-bedroom freehold units at $295,000 to $560,000, a three-bedroom unit at $670,000 and a four-bedroom one for $740,000.
Medland says a significant difference with his new apartments compared with those developed before the global financial crisis will be annual ownership costs.
Body corporate fees and council rates at the new complex will be just $2000 to $3500 a year, he claims.
Medland: “Our ownership costs will be the same as owning a house in the area.
“There’s a maintenance fund to maintain a carpark and some common ground and for long-term maintenance of the building but nothing more.”
Medland says the majority of other apartment complexes on the lakefront or around town came with huge annual ownership costs – often $10,000-$12,000 annually.
“This issue is the elephant in the room and was the main reason for their poor performance in rental income and capital value.
“Also, you have no management contract enforced on you – you can do whatever you want with your property.”
Medland says construction of the five-building complex will start next March/April.
The estimated construction price, including technical costs, is $8 million.
“Compared with all the other developments along Frankton Rd, we have very little excavation to do,” Medland says.
Taking advantage of more than 110 metres of lake frontage, every unit has unfettered water views, he adds.
The complex has been locally designed by Allan Huntington of Southern Architecture.
New Zealand Sotheby’s International Realty is the listing agency.
Medland and his partners are already building a 17-unit central Queenstown development on Hallenstein Street.