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How
many apartments are there?
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There are 87 apartments in
total - two single room suites, three 1-bedroom apartments, twelve
2-bedroom apartments and 35 "twin key"
fully-furnished self catering apartments. A twin
key apartment comprises a 1-bedroom unit and a
room suite.
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What
am I buying?
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You are
purchasing a freehold strata-titled investment
apartment that is managed on your behalf by an
on-site manager.
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What
is Cathedral Junction Apartment's address? |
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Located in the heart
of Christchurch, Cathedral Junction is just a
stroll to major tourist attractions such as
Cathedral Square, The Strip, major shopping malls,
Botanical Gardens, Christs College, Museum, Art
Gallery, Arts Centre, etc .
Its address is Cathedral Junction Complex,
Gloucester and Worcester Streets, Christchurch,
New Zealand.
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When
is the estimated completion date? |
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Cathedral Junction is scheduled to be completed in
the last quarter of 2003.
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How secure will the
building be? |
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General
Subground controlled carparking is fully
restricted with entry gates activated by
electronic proximity cards. Ground floor retail
arcade is secured overnight with no public access.
Owners and guests have 24-hour secure independent
access.
Residential Apartments
Your complete security is assured with in-house
video (CCTV) screen viewing of visitors. Complete
remote enablement and disablement of access doors,
passage ways, lifts, ensures visitors are
restricted to relevant building zones. Electronic
proximity cards enable quick and convenient entry
(relates to units 39E to 42E).
Investment Apartments
Guest security is managed by individual voice
intercom to each unit with remote control door
release at street level. Remote limited access to
doors, passageways and lifts restricts visitors to
relevant control zones. Electronic proximity cards
enhance guest security.
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Who
is the developer? |
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Cathedral Junction
is jointly developed by Nouveau Pacific Holdings
Ltd.
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Who
is the builder?
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Construction is
carried out by Multiplex Constructions (NZ) Ltd .
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Who is the tenant? |
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The tenant is Quest
NZ Ltd. Quest Ltd directly operates over 4,000
apartments throughout Australasia and are
Wellington's largest serviced apartment provider.
Their well established network enables them to
achieve high occupancy rates within the expanding
tourist accommodation market.
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What is the lease
term? |
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Units are leased by
Quest NZ Ltd directly from the owner for an
initial lease term of 10 years, with option of
renewal for further two terms of 5 years each.
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Is there a furniture
package? |
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Yes, each investment
apartment is tastefully yet functionally
furnished. Refer
to Furniture Package.
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What
outgoings are payable in my investment?
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Cathedral Junction
offers an initial net rental guarantee of 8% on
purchase price in the first two years, with rental
reviews to prevailing market rates every two
years. A minimum rental guarantee of 7% per annum
is also given over the 10+10-year lease term.
After the
net rental guarantee period, owners
will be liable for outgoings such
as maintenance, FFE reinstatement, city council
rates, water rates and body corporate fees.
However, no management fee is to be paid to Quest
NZ Ltd.
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Is there a
Body Corporate?
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Yes. The Body
Corporate is responsible for the administration
and general running of the complex such as all
general maintenance and upkeep of facilities,
foyers & corridors areas, common areas,
grounds and the building.
The body corporate fees covers a variety of
expenses and includes cleaning of common areas,
building and public liability insurance, fire services maintenance and
management.
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What sort of demand
is there for this type of accommodation?
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Christchurch as the
gateway to the unspoilt natural heritage of the
South Island and New Zealand’s second largest
entry point is well placed to benefit from the
recent 12.3%* increase in international visitor
numbers and a projected national growth of 4% to
6% per annum* over the next five years. Demand and
occupancy rates are forecast to continue to
improve over that period.
New Zealand was recently voted the world's
safest tourist destination by leading European
tourist magazine (Wanderlust).
A continuing
accommodation shortage in Christchurch and robust
tourism figures make purchasing a Cathedral
Junction apartment a sound investment decision.
*Christchurch and Canterbury Marketing and
Statistics
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Who
is responsible for paying my return? |
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The
lessee, Quest NZ Ltd is responsible
for paying your rent.
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Can I rent out my
apartment?
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If your apartment is
leased to Quest NZ Ltd, Quest NZ Ltd will have
exclusive use of the property for the term of the
lease.
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Can I sell my
investment at any time? |
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Yes, you are free
to sell your investment at any time, just as you can with any property.
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How can I sell the
apartment, if necessary? |
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Your apartment will
be able to be sold by any real estate agent in the
normal fashion, subject to the buyer accepting the
terms of lease.
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Are
there restrictions on resale? |
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No,
there are no restrictions on resale, meaning that
a owner is free to sell to a willing buyer, be him
a foreigner or local.
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Should I
pay cash for an investment property? |
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Generally,
no. The golden rule for property purchase, be it
for your own use or for investment, is to use leverage, i.e. to use other people's money (in
this case the banks') to pay for an appreciating
asset. Interest expenses are fully tax deductible.
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Who can purchase apartments in
Cathedral Junction? |
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Anyone,
i.e. a local or foreigner, with the financial
capability can purchase units in Cathedral
Junction.
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What is the
purchasing procedure? |
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Off-the-plan
purchasing provides for delayed settlement. The purchasing procedure is as follows:
- Pay SGD3,000 booking fee upon booking of a unit.
- Sign the sale and purchase agreement within the next 3 working days.
- Pay 5% of total purchase
price within 10 days of signing of sale and
purchase agreement.
By law the 5% cannot be used by the developer until the
property is fully completed. Deposits shall be held in an interest bearing trust
account with the vendor's solicitors. Net
interest shall be either credited to the
purchaser on settlement date against purchase
price or paid directly to the purchaser on settlement.
Booking fee of SGD3,000 shall be refunded to purchaser.
- Pay the next 10% of total purchase price to bring the
deposit up to 15% of total purchase price within the
next 15 days.
- Balance of total purchase price upon completion - no progress payments.
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What are the
advantages in purchasing "off-the-plan"? |
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The
main advantages include delayed settlement where you only
pay 15% deposit which is held in a legislated trust
account.
As only a small deposit of 15% is needed until completion (usually 1-2 years), investors funds
are free for other investments. Furthermore, you are able to lock in at today's price which is beneficial in a
rising market and enjoy the time-flexibility to organise finance be for settlement in 1-2
years.
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What
about Goods and Services Tax (GST)? |
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The
apartment price is zero-rated for GST as a going concern.
All such purchasers are required to be registered for
GST prior to settlement.
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Why
should I buy an apartment at Cathedral Junction? |
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Cathedral Junction
offers one of the finest investment choices in New
Zealand in terms of location, unique architectural
design and flexibility in rental arrangement.
Units are leased by Quest NZ Ltd directly from the
owner for an initial lease term of 10 years, with
option of renewal for further two terms of 5 years
each. Cathedral Junction offers an initial net
rental guarantee of 8% on purchase price in the
first two years, with rental reviews to prevailing
market rates every two years. A minimum rental guarantee of 7% per annum
is also given over the 20-year lease term. The lease provides
continuity of income and a worry free investment.
Further to the security of investment income, Cathedral Junction
also offers flexibility to owners in that owners
can, by giving three months notice, suspend the
lease to Quest NZ Ltd and live in the unit
indefinitely. During this period, owners will
not receive rent and will be responsible for paying
power etc. For owners who wish to stay in their
own units temporarily, owners can give one month
notice and stay in their unit, paying service charge
(presently NZD45 per day) and not receive rent
during this time.
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