Paku Lodge

Tairua, Coromandel, New Zealand

• About
• Occupying your Apartment
• Method of Ownership
• Apartments
• Construction
• Internet
• Sky TV
• BBQ
• Kayaks
• Laundry
• Parking
• Smoking Policy
• Furnishings & Appliances
• Click here to see photos of Paku Lodge

About

Paku Lodge is nestled at the foot of Paku Hill, right by a beautiful sandy beach, overlooking Tairua Harbour with views of the Coromandel hills.  A two minute walk takes you to the site of a new marina development, and a five minute walk brings you to the shore of Tairua's stunning surf beach, with spectacular views of the pacific.

Ten apartments are offered for sale at Paku Lodge.  They are available as quarter-shares in stylish studio or one-bedroom fully furnished freehold apartments.  A quarter-share entitles you to use your apartment for one week in every four - no fewer than 13 weeks in a year!  If you don't wish to occupy it for all of you allocated time, the onsite manager will rent out your apartment for you, subject to demand.  Rental income from all apartments is pooled, ensuring that when there are vacancies, one owner is not favoured over another.

Although most people will opt to buy one quarter-share (constituting one quarter title ownership of one apartment), they may purchase two, three or even four shares.  The cost of the quarter share, from just $85,000 makes this excellent property affordable for many New Zealanders. 

With a quarter-share you have the benefits of full ownership, with only a quarter of the capital outlay.  Shared ownership also means lower maintenance and overheads, while you still get to enjoy your apartment every month of the year, without having to worry about lawns, security, or maintenance.

Paku Lodge has a fulltime onsite manager, who overseas cleaning, interior and exterior maintenance, garden, security and rental arrangements.  There is parking onsite for one vehicle per apartment. 

Owning a Paku Lodge apartment is a great way to guarantee your Coromandel holiday accommodation for the foreseeable future, as well as being potentially an excellent long-term investment.  Purchase of a quarter-share apartment at Paku Lodge is as a going concern, hence it is zero-rated for GST.  The income generated by the apartment is GST inclusive and the manager collects the GST on the owners' behalf and forwards it to Paku Lodge's accountants, who file the six-monthly GST returns.  The balance is paid to you on a monthly basis.  Costs for running the apartment, such as rates and body corporate fees, can be claimed as an expense on your persona; or trust tax return.

Proportional ownership of expensive “toys” such as planes and boats has been accepted for a long time in New Zealand.  Proportional ownership of holiday properties is utilised overseas but it is relatively new to New Zealand.

¼ sharing is a smart new way to own a beach property.

Quarter share ownership is an innovative and flexible property ownership alternative for a beach home.  It’s not a share of time (timeshare) - you actually own a freehold share of a property and enjoy the benefits of your ownership including potential capital growth over time, and potentially an income stream that can help offset property ownership cost.  But importantly, it’s a piece of property that can be handed down through generations, enabling the continuity of the kiwi icon, the family holiday at the beach.

The property is fully managed for you so you have no maintenance worries, no gardens to weed or walls to paint ? just relax and enjoy your holiday.

The 1/4 share ownership system in Whangamata proved so popular that we began a search for another property to complete a similar project.  We discovered Paku Lodge, right on the waterfront at Tairua in the Coromandel.  We purchased Paku Lodge and began a complete refurbishment, inside and out in July.  We completed the refurbishment and opened Paku Lodge for sales on Labour Weekend 2007. 

Paku Lodge consists of 5 studio and 5 one bedroom apartments, providing 40 x ¼ shares.  All apartments have kitchen facilities and decks with stunning harbour views.  Sales to date are 19 x ¼ shares.

Purchasing a ¼ share at Paku Lodge works really well, for the reasons noted below:

1. A purchaser can own a property in an exceptional location for a fraction of the cost of purchasing their own full share property.
2. Freehold fee simple in stratum title to each ¼ share.  This means you can sell at anytime without referring to anybody else for permission to do so.  Any capital gain is yours to keep.
3. Onsite managers own their own accommodation on-site, and the business.  This means they have the same interest in the complex as you do.  They also provide security and ongoing maintenance, meaning no work for you to do when you arrive.
4. Owning a ¼ share makes you think about taking a break each month.  A ¼ share entitles you to 1 weeks use in every 4, all year, over the years until you sell.  You can of course use weekends only, or no days at all if you are busy, and the managers will lease the unused days out for you.  An established calendar sets out the allocated weeks of use for each ¼ share owner.
5. Fully refurbished, re-opened November 2007, spec’d to a high quality, reflected in furnishings, fixtures and fittings.
6. Income from rental received (from any unused proportion of the allocated weeks) at Paku Lodge goes into a pool, and distributed monthly via unit entitlement.  About 50% of the income received goes back to the owners after costs such as manager’s fee, gas, electricity, advertising, linen, etc.  Income depends on many things including owners use and the occupancy rate of the complex.  Although this income is not a large amount, it contributes to the owners costs.
7. A Body Corporate is set up at Paku Lodge.  All ¼ share owners belong to the Body Corporate.
8. An on going refurbishment fund as part of the Body Corporate will keep the property sparkling and as new over the years to come.
9. These properties are sold as holiday homes not investments, but the location means that a ¼ share is potentially an excellent long term investment.
10. Owners pay 15% of the daily rack rate when they stay and a cleaning fee of $25.00 when they leave.  The Body Corporate fee includes a refurbishment fund for interior and exterior upkeep.

Occupying your apartment

Occupation weeks run from Friday to Friday.  This is because some owners may wish to stay just for the weekend rather than the full week.  For the rest of their allocated time, the owner can make the apartment available to other family members or friends, or the manager can rent it out and you as the owner will receive the benefit of the income from the pooled vacant apartments for those days.  Occupancy is from Friday 2pm to the following Friday at 10am. 

NOTE:  You are excluded from the rental income pool while you, your family or friends are occupying your apartment.

When you are using your apartment, there is a modest charge of 15 percent of the daily rental rate to cover your share of the manager's salary.

• Power and telephone is charged as per the unit entitlement and deducted from your income.
• The owner will pay a cleaning fee at the end of their stay.
• You may swap weeks with other owners of your apartment, or with an owner of another Paku Lodge apartment.
• Allocation of weeks is on a rolling basis throughout the year, and a re-allocation will be done each year to ensure that each shareholder can occupy their apartment on Christmas Day/New Years Eve once every four years.
• With a quarter-share of an apartment (i.e, 1 share) you will pay only a quarter of Body Corporate fees, rates and refurbishment fund for that apartment.
• You may sell your share at any time without referring to any other party.

Method of Ownership

There is a legal Property Sharing Agreement for personal or trust ownership.  A free simple freehold unit title is issued for each quarter-share. 

Apartments

All apartments are single level, occupying either a ground floor or first floor position.  Studio apartments are 30 sq metres(approx), include a kitchen, sleep two, and have a balcony or deck from which there are extensive views over Tairua Harbour.

Construction

Sturdy concrete block construction; full refurbishment completed October 2007.

Internet

Wireless internet connection is available in each apartment for the use of owners and guests.

Sky TV

All apartments have Sky TV.

BBQ

There are three barbeques available on the property for the use of owners and guests.

Kayaks

Paku Lodge has Kayaks available for the use of owners and guests.

Laundry

There is a shared laundry with two washing machines and two dryers.

Parking

Each apartment has onsite parking for one car.

Smoking policy

All apartment interiors are non-smoking areas.

Furnishings & Applicances

A full furniture package is included with the price of each quarter-share of an apartment (full list for each apartment is available on request).  The package includes homewares, linen, etc, with furnishings and appliances including:

• Lounge chairs, coffee table
• Beds & bedside tables
• Dining table & chairs
• Carpets & floor coverings
• Curtains & blinds
• 20'' LCD TV/DVD player
• Fridge
• Dishwasher (in 1 bedroom apartments only)
• Microwave & grill
• Cooktop
• Hair dryer

Click here to go to Paku Lodge's website and see more about this popular holiday spot on the Coromandel Peninsula.