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Buying Your Apartment

Buying Your Apartment With Quest

Investment Return Comparison


A LITTLE PREDICTABILITY GOES A LONG WAY

Investing is about getting the balance between Risk and Return Right.

Quest, despite the very volatile economic climate that has prevailed within New Zealand over the past 10 years has established a track record of delivering on the income expectations and product presentation - all of which has assisted in protecting the value of the asset.

After all if Quest was not meeting the expectations of both its client and landlord stakeholders it would not of achieved the growth it has achieved and continues to achieve.

Quest Properties is an investment with balanced performance. Its distinctive qualities deliver steady growth and returns more akin to commercial property market behaviour than a typical residential investment. So you can expect more consistent appreciation and less volatility - and your total returns are weighted more evenly across income and growth.

At Quest we set our rentals based upon the market drivers of consumer demand, both factored to be better than they typical residential rental return but linked in with the growth and performance of the serviced apartment sector.  

This dynamic produces a different kind of growth than a typical residential property - a growth path that is more consistent, more predictable, less volatile and less speculative.


SIDE BY SIDE, THERE’S NO COMPARISON

 

Quest Properties

Typical Residential Property

Lease

Long term lease with a trusted brand

Short term lease with multiple tenants

Rental increases

Fixed annual rental increases at 2%

Uncertain as subject to market

Vacancy periods

Nil

Landlord risk & cost

Management fees

Nil

Landlord cost – Typically 8% of total rental income

Repairs & maintenance

Tenant cost

Landlord cost/risk

Body corporate fees – Common area operation costs e.g. cleaning, electric

Tenant cost

Landlord cost/risk

Body corporate fees – capital

Landlord obligation

Landlord obligation

Building Insurance

Landlord cost

Landlord cost

Furniture & fittings

Tenant obligation

Landlord obligation

Letting fees

Nil

Landlord cost – typically first month’s rent

Advertising

Nil

Landlord cost

Capital works

Landlord obligation managed by the tenant

Landlord obligation

Typical building depreciation

4%

2.5%

Property inspections

Daily

Annually

 

INDICATIVE INCOME RETURNS

 

 

Investment Returns Average

Investment Type

Median Return

Reported

Kiwi Saver

4.74%

4.74%

Residential Property Rental Yields

4.66%

4.66%

New Zealand Shares

5.80%

5.80%

CASH investment Fund

3.88%

3.88%

Apartments (Top 10 suburbs NZ)

6.95%

6.4-7.5 %

Quest Apartments

7.00%

Based on real/validated values 6.5-9%