A newly-settled Queenstown couple have started a business selling co-ownership in holiday homes to make them more affordable.
Sharon and John Russell’s business, Second Home, offers one-eighth shares in freehold real estate.
At present, they are selling a three-bedroom, first-floor apartment at Jack’s Point, about to be built, for $316,000 a share; a stand-alone home at Silver Creek, also yet to be built, for $418,000 a share; and a four-storey Wānaka apartment for about $395,000 a share.
‘‘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 a profound part of our lives,’’ they say.
Each share can also be split between two people at most.
In return for their one-eighth equity share, owners get use of their asset for six or more weeks a year.
John says the concept differs from timeshare in that you get a freehold interest, on a title, and you also benefit from any capital appreciation.
He and Sharon are experienced in the concept, initially through luxury boat ownership — they founded Boatshare Australia in 1999, then Australian luxury yacht syndication business Riviera Syndication, in 2007.
In 2013 they invested in a co-owned villa in a small town in Italy.
The couple are presently building a four-level private home in Queenstown’s Middleton Rd, which they’re co-owning with five friends.
‘‘We sold the shares in our home so quickly we had others wanting to buy in so we started Second Home,’’ Dunedin-born John says.
Soon after launching their Jack’s Point apartment last month, they sold the first two shares.
Once they sell four out of eight, their options on properties become unconditional, ‘‘so those people are guaranteed of their unit’’.
‘‘The remaining four shares, that’s our problem, so hopefully we sell them before settlement, but if we don’t, we have to stump up.’’
Owners also pay a management fee — $7200 a year for Jack’s Point — which includes body corporate fees and a concierge service.
While new to New Zealand, John says co-ownership is big in the United States.
John says the concept is also environmentally friendly, as rather than eight families buying eight holiday homes which sit empty most of the year, these ones are fully occupied.
