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Buying Your Apartment

Buying Your Apartment With Quest

How to Proceed


STEP 1 Research

Before proceeding we strongly recommend you read all of the information available under “Your relationship with Quest” so you have a clearer understanding of what you can expect over the life time of the relationship. 

 

STEP 2 Review Listings

Secondly review the listings of apartments available for purchase by clicking on FIND AVAILABLE LOCATIONS FOR PURCHASE. 

Once you have selected the apartment/location of Interest then please consider the options below to assist you. 

 

STEP 3 Financial Advice

Like all investment classes, serviced apartments requires a high level of specialised understanding from the advisor community to assist you with making the right decision that suits your situation and requirements. This local support also assists those buyers from off shore. 

Quest recommend that you seeking independent investment guidance from qualified and informed professionals, is a key first step. Quest recommends contacting Amanda Watt of Crowe Horwath to seek that advice. For more information on Amanda click here.

Quest also recommends Crowe Horwath for any due diligence or Tax advice you may need for your investment.

 

STEP 4 Contact a Facilitator

"Having been the landlord for one of Quests 40 serviced apartments over the past 3 years I understand that a successful outcome to stakeholders is achieved through a partnership between the landlord and Quest. For Quest it is a carefully thought about process in selection of the location, building and Franchisee. For the Landlord it is ensuring the building performs at a level of planned maintenance and capital expenditure and that the Lease which is in place clearly defines responsibilities between tenant and landlord in this regard".

Chris Johanson 

As you consider ownership of a Quest Investment, Chris will:

  • Assist your understanding and evaluation of the investment aspects of ownership, which fundamentally are the Lease, cost obligations as part of the building and Unit Title Ownership.

 

STEP 5 Finance, Valuation and Due Diligence;

As you begin the process of investment you will need to think about or engage Chris to:

a. Finance: Facilitate the introduction of bank or Finance Broker

b. Valuation: As part of the application for funding a property valuation will have to be completed, to this end Chris can facilitate a local valuation both on the rental stream and the   apartment value. 

c. Due Diligence:  There are a number of matters you need to take into account when completing your due diligence these include 

                                           i.   The state of the actual apartment (Internal), its maintenance

                                         ii.    The status of the body corporate and common areas

                                        iii.    What are the body corporate costs 

                                        iv.    What is the state of the body corporate any residual/material issues.

                                         v.    The Building Construction

                                        vi.    What is the earthquake strengthening of the building

                                       vii.    How am I assured that the building is not affected by the Leaky Building Syndrome

                                      viii.    How are the obligations of the builder/construction company locked in ie builder

 warranties/guarantees

                                        ix.    The actual lease document

                                         x.    What is the rent

                                        xi.    How often is it renewed

                                       xii.    What is the length of the lease

Chris will facilitate the introduction of the correct due diligence professionals to asses such as legal and structural.

While Amanda Watt can assist any Tax, Accounting, Due Diligence Advice you may need.

 

Don’t Be Myth Led

There are numerous examples within the serviced/investment apartment sector where developers/financiers used the “Rental Guarantee” format to justify/give the apartment is capital value. In New Zealand A most recent example has been Blue chip.

In many cases the investor actually paid for their above market rental guarantee within the capital purchase price of the Apartment only to be put under great pressure when the rental guarantee ended and/or proved non sustainable by the investment company and

Quest does not do this, Quest rentals are based upon two market key criteria, they must be set to deliver at least what you would get within the comparative residential sector but with the opportunity to grow to access the growth of the serviced apartment sector. 

The rental at Quest is set to never go below the rental of the first year of the previous five year term.

To this end the Quest lease does not give the apartment its capital value, an apartment has an intrinsic value regardless of the leasing arrangements, nor does the lease have a negative impact on the value.  The lease only has a negative impact on value if the rental is confirmed to be below market.  The only restriction/impact caused by the Quest lease, is whilst the lease is in place it cannot be owner/occupied.

 

My family Trust is the owner of 3 two bedroom apartments at Quest Parnell. It has owned 3 other units in the past. The purchase was in 2003.

Since that time we have always had the prompt processing of any requests of issues that may have developed (very few), and all payments have been made on time and as per the Leases. We have not had the occasion to visit the units often, but when we have they have always been in very good condition. The complex as a whole, managed by the Quest Parnell franchisee, has been run and maintained well.

Regards

Trustee – The Whare Trust