Above photo from Piri Road after the storm damaged trees were removed.

The road sign on the Piri Road corner promoting “NEW COHOUSING APARTMENTS FOR SALE” has generated good interest from prospective purchasers/guests/residents/inmates. Their enquiries are shared in anticipation that others will want to explore the same issues.

Above photo from Piri Road before the trees were removed.

The ‘categories’ of prospective buyers so far confirm the concept fits a range of lifestyles. The most common are anglers considering an affordable holiday home investment in Turangi. Previously they were limited to 50-year-old x-rental housing stock in the village that was developed as a ‘hydro town’. These have increased in $ price to the level where TRM’s new apartment development can compete effectively. Apart from continual maintenance, a particular concern was ‘security’ when they are absent. We understand! In addition to comparable price advantages plus additional facilities, these can be fully managed for absentee owners. If they include them with the motel, then they have no further $ outgoings for rates, insurance, maintenance, power, etc. That makes them very affordable! TRM have managed some of the existing units on this ‘absentee-owners’ basis for the last 16 years so are familiar with all the issues that are likely to arise. Three Auckland inmates are looking at pooling their financial resources to buy a larger unit between them. A two bedroom is required by a recently retired inmate for permanent residency. Another only wants a minimal sized studio for his bed plus en-suite shower and tiny kitchen plus parking for his boat. So we have to provide flexible modules which can be amended to fit buyers’ specifications.

Site being cleared for the Tongariro River Mews common house.

Others are considering becoming permanent cohousing residents. i.e. One regular inmate angler is considering suitable alternative accommodation choices close to the Tongariro River. He and others were more curious about the legal ownership model. He already had his name listed with another retirement village in Taupo but is concerned about the recently announced Government investigation into the retirement village industry. After further examination, no surprise to us, he now prefers the TRM option!

As there are no retirement village developments available in Turangi, this is the closest alternative. At the same time it needs to be emphasised TRM is not using the questionable retirement village licence-to-occupy type of contract that has been under some strain in news articles recently. A Government Review of the 20-year-old retirement village laws is underway. After a number of complaints, the Commerce Commission is investigating retirement village’s potential breach of the Fair Trading Act. The probe comes after a number of complaints, including a series of complaints from Consumer NZ and village residents, about what they claim are unfair contract clauses.

There have been several leading feature articles in the daily newspapers. i.e. A recent (x Dominion) Post ‘Opinion” piece by Janine Stark describes it as follows: “As a financial product, most retirement village units are a hybrid mess that do not pass any test of consumer fairness. Their industry has become entrenched in its right to operate this way”. Another freelance Post journalist, Janet Wilson, asks: “Riddle me this; why would you agree to a property contract that costs you hundreds of thousands, sometimes millions to purchase, which doesn’t give you ownership, but a right to occupy, but you must still pay for the property’s maintenance and upkeep?” Mmmm.

TRM’s ownership structure is designed to address their complaints.

There is no age qualification limitations and, most important, buyers own-their-own apartment. i.e. Future capital gains are enjoyed by buyers. A small portion will have to be shared with TRM Holdings Ltd., the present ownership company that will still need to manage all common facilities such as the common house – similar to a retirement village community centre – but it is a much fairer system.

Meanwhile we are still patiently waiting for resource consent approval for the cohousing concept from Taupo Council. Site preparation in the form of clearing storm damaged trees from the Piri Road frontage as illustrated above in the ‘before and after’ photos, has commenced in anticipation… For those still wondering about precedents of the cohousing conceptual basis we refer again to last month North & South magazine below: