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How
many apartments are there? |
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There
are 35 self-contained 5-bedroom apartments.
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What
am I buying? |
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You
are purchasing a strata-titled self-contained investment
apartment that is managed on your behalf by an on-site
manager.
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What
is UNITEC Residential Village 1's address? |
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UNITEC
Residential Village 1 is located within the UNITEC
Institute of Technology at 1510 Great North
Road, Avondale, Auckland.
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When
is the estimated completion date? |
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UNITEC
Residential Village 1 has been completed in 2002
and is now in operation.
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Who
is the developer? |
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The
developer for UNITEC Residential Village 1 is Townscape
Consultants Limited (Townscape).
Since inception in 1988, Townscape has completed
about fifty projects of varying sizes. Of these
projects, no less than seven have been recognised
with Architectural Awards. The company is highly
specialised, with an extensive background in Architecture,
Engineering and Construction.
Townscape began specialising in student apartments
in Wellington in 1998. The completion of the Te
Awhina Student Apartments early in 2000 marked the
establishment of Townscape in this specialist field.
In 2001, the Drummond Street Student Apartments
were completed in Wellington, being the second complex
for Massey University.
Early last year, the UNITEC Residential Village
I Student Apartments opened to students.
Two complexes, including UNITEC Residential Village
3 were completed in 2003 in Auckland.
Townscape is currently constructing a third complex
in Wellington for Massey University. This is due
for completion in July.
In the area of student accommodation, the company
is at the leading edge of developing new and innovative
solutions. The success of both Te Awhina and Drummond
projects is evidence of a clear understanding of
the needs of the students and the needs of the investors.
The level of satisfaction of the investors is shown
in the vote of thanks unanimously supported at the
first and second Body Corporate meetings. The level
of satisfaction of the students is shown by the
fact that the facilities are full, with waiting
lists.
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What
does the Body Corporate do? What does the Body Corporate
cover? |
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The
individual strata apartments will come into existence
by the registration of a plan of subdivision. On
registration of the strata plan, a Body Corporate
for UNITEC Residential Village 1 comes into existence
and as an owner you are a member of that Body Corporate.
The essential duty of the Body Corporate is to take
care of 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 holds the common property on its name,
but on behalf of all apartment owners in shares
proportional to the unit entitlements for UNITEC
Residential Village 1.
The body corporate covers a variety of expenses
and includes cleaning of common areas, building
and public liability insurance, garden maintenance,
fire services maintenance and management.
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What is the
tenure of UNITEC Residential Village 1? |
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Freehold.
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What
facilities are there for tenants? |
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All
apartments are self-contained with kitchen and bathrooms.
There is also an office, a store and a laundry for
the students convenience.
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What
sort of demand is there for this type of accommodation? |
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There
are currently three accommodation options within
the UNITEC
Institute of Technology Campus - namely Oak
Hall which offers 75 single rooms, The Residential
Village 1 which contains 35 five-bedroom flats,
and UNITEC Residential Village 3 which offers 134
beds in a mix of single-bedroom apartments to five-person
flats.
As the number of in-campus accommodation is limited
(catering to only 2.1% of total student population)
and the hostels fills up quickly, students are advised
to apply well in advance.
The shortage in supply is also aggravated by the
increase in the number of international students
studying in New Zealand.
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What is the
investment returns? |
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You are guaranteed
of rental returns of min 6.7% p.a. during the lease
period. For the first 4 years, the rental is guaranteed
at 8% nett p.a.
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Who
is responsible for paying my return? |
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The
UNITEC
Institute of Technology, who is the lessee of
the development for a period of 10 years with an
option to renew for a further 10-year term, is responsible
for rental payments. UNITEC in turn leases the apartments
to the students on a bedroom basis under a tenancy
agreement.
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Who
looks after maintenance on my apartment? |
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C.P.I.-Townscape
Joint Venture is engaged by the Body Corporate to
manage maintenance of the complex until 1st February
2006.
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What
outgoings are payable on my investment? |
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Outgoings
payable include Body Corporate fees and management
costs as defined in 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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Should
I pay cash for an investment property? What quantum
of financing is available? |
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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.
Financing available for the project is as follows:
| Type
of Loan |
Maximum
Quantum |
Interest
Rate |
| NZD
Loan |
Up
to 75% loan;
vendor financing of 15% is also available. |
6.25%
(fixed for 1 year) |
| SGD
Loan |
50%
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2.25%
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Who
can purchase apartments in UNITEC Residential Village
1? |
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Anyone,
i.e. a local or foreigner, with the financial capability
can purchase units in UNITEC Residential Village
1.
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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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What
is the purchasing procedure? |
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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 and pay 5% of total purchase price.
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.
- Pay the next
5% of total purchase price to bring the deposit
up to 10% of total purchase price within the
next 21 days.
Booking fee of SGD3,000 shall be refunded to
purchaser.
- Balance of total
purchase price is payable 30 days later, i.e.
upon settlement of property.
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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 UNITEC Residential
Village 1? |
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Buying
an apartment in UNITEC Residential Village 1 secures
you an investment in a major growth industry in
a major growth area - education is the 2nd largest
growth sector in New Zealand - and enables you to
benefit from an easy-care investment which is professionally
managed.
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