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Home / Business

The ups and downs of apartment living

Anne Gibson
By Anne Gibson
Property Editor·NZ Herald·
26 Jan, 2015 04:00 PM8 mins to read

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Lawyer Sue Simons downsized to a Viaduct apartment when her sons went away to university. Photo / Brett Phibb

Lawyer Sue Simons downsized to a Viaduct apartment when her sons went away to university. Photo / Brett Phibb

PM John Key has said apartments are an option for first-home buyers. Property editor Anne Gibson explores the pros and cons.

Brian Keene, QC, Auckland District Law Society president and a skilled litigator with more than 37 years' experience, is a suburban dweller.

He plans to stay that way, although he and wife Jan have considered buying an apartment.

He doesn't much like what he sees.

"It's the Wild West when it comes to buying an apartment in Auckland," he said of what he considers very loose legislation governing the sector.

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"I'm a control freak," says the barrister, telling how he has represented a number of parties in litigation involving apartments. "It's just not a lottery ticket I want to buy." He has looked at blocks around Mt Eden and the Viaduct and although he describes some of those as iconic, he is not in the least tempted, identifying deficiencies in the Unit Titles Act.

"Every house I've bought, I've improved and I don't want to have to wait until enough people agree to paint the outside of the building," he said, referring to the body corporate structure in apartment blocks.

"I go home for peace and quiet, not to apply my skills to where I live.

"Most pernicious of these are leasehold apartments because the land you live on is controlled by one person only and if you're going to contest the new rental, you've got a massive power imbalance." Uncluttered life 'cathartic' Environmental lawyer Sue Simons rents a two-bedroom Viaduct Harbour apartment and delights in leaving the car parked at home.

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"I walk to work in Shortland St. It takes 15 minutes. I use the Metro New World and all the restaurants and cafes I need are on the way. The car sits there and it's wonderful, I don't get stuck in traffic."

She and her daughter left a five-bedroom Grey Lynn house for their Latitude 37 place and she warns those considering such a move that they must be ruthless with possessions. Anything that didn't fit was given to friends, hospice, Salvation Army or discarded.

Brian Keene says it's the Wild West when it comes to buying an apartment in Auckland.

Simons, a founding partner of law firm Berry Simons, said she took a new approach to possessions.

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"You just start to think, if I didn't use something for two to three years, do I really need it? So it was anything and everything that no longer qualified which was either given away, thrown away or recycled. It's cathartic to do such a big throw-out."

With both sons at university in the South Island, Simons said the place suited her stage of family life and she might consider buying an apartment.

You can limit your liability

Joanna Pidgeon, Auckland District Law Society vice-president, has an exceptionally big Auckland floor which she plans to convert into an apartment and is enthusiastic about inner-city living.

She owns a 240sq m residential floor in a Vincent St building which comes with a 10sq m storeroom and three car parks.

But she advised people to buy in the name of a company, not an individual, saying this could act as protection if something went wrong.

"That way, there's limited liability. If you can't pay your body corporate fees, you can liquidate a company. If it's bought in the name of an individual, that person can be bankrupted for non-payment."

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Joanna Pidgeon says freeing up time from the commute is about work-life balance.

Pidgeon lives in the suburbs but plans to move around May.

"I think in suburbia you drive a lot, even to the local shops, but in town you end up walking a lot more. For me, it's freeing up time from the commute. It's not to work more but to achieve a better work-life balance."

Be a good neighbour

Long-time inner-city resident John Sweetman advises people to carefully weigh up the pros and cons of apartment living before buying.

He has lived in the heart of Auckland for many years and been a strong advocate of the concept, running the stately historic bed and breakfast Braemar in Parliament St, opposite the High Court.

But he warns that squeezing in together is not trouble-free.

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"Living in close proximity to others means extra consideration, cooking smells and noise. There are body corporate rules but it usually comes down to being a good neighbour - if there is some noise, don't complain. If you want a quiet life, don't live right in town."

But he says that must be balanced by an attitude of "come on, be reasonable, it's 1am already."

He runs Braemar from one of the three Courtville buildings, unique examples of Edwardian urban domestic architecture.

"The old buildings have brick walls between units and thick floors and ceilings but noise and smells go out the windows and we are all in this together.

"Also you can't change things about your flat on a whim. Body corporate approval protects the systems - drains, pipes, wires and leakage and the heritage features.

"Good neighbours don't run roughshod over community wishes. Remove carefully and save for reinstatement and keep with the character of the place. Corner and Middle Courtvilles are Category 1 Heritage so don't wreck it. If you want a modern place buy one, don't ruin the character - the very thing that makes these buildings great.

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Living in close proximity to others means extra consideration, cooking smells and noise. Photo / Dean Purcell

"My ex-wife has retired and I live here and enjoy looking after travellers, doing voice work for radio and TV from the converted coal cellar and giving the house a new life," he said.

Weathertightness issues, earthquake risks, body corporate disputes, fire safety, building defects - all these are things to consider before buying an apartment.

The Department of Building and Housing offers extensive information on its website and emphasises the huge contrast between suburban home and CBD apartment ownership.

"Buying into a unit title development is different to buying a stand-alone house. As a unit owner you have different rights and responsibilities and there is some shared property you have an interest in," the department advises.

The Unit Titles Act 2010 sets out important rules about the disclosure of information between buyers and sellers of a unit in a development.

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It is important that those intending to buy a unit understand their rights to request information from the seller and how this may affect a sale and purchase agreement.

Top tips for apartment buyers

Units are usually cheaper than suburban housing, more centrally located and offer many advantages but there are hooks too, so don't fall into the trap of being ill-informed when you're buying:

*If there is a price indication, how does that compare with other units in the building and vicinity?
*Read the body corporate information: what are the annual fees, rules, responsibilities with ownership?
*Consult a lawyer before you buy. You'll probably need a Land Information Memorandum, one of the many sources of information to help you in your decision.
*If the unit is in an older or heritage block, is that block up to 34 per cent of New Building Standard? Tough new seismic rules mean thousands of apartments need millions of dollars spent on them.
*If the block was built in the late 1990s or this century, are there weathertightness issues? Don't just ask the agent. Read the body corporate meeting documents and talk to your lawyer about that potential hazard.
*Nightclubs, 24-hour businesses (nice waterfront, busy port) or even airconditioning units atop nearby buildings can keep residents awake and make going outside unpleasant.
*What areas are common ground: courtyards, rooftops, lobbies? What are the rules and how do you let guests in, get your newspaper, pick up your mail? Do you have a carpark, where do guests park?
*Is the block on leasehold land? Rude shocks could be in store at the next ground rent review period, often every five to seven years. Can you afford a big hike?
*A building report could provide more information about how and when the block was built, what's behind the walls, and possibly alert you to any potential issues.
*Is DIY possible? Say if you want to replace the carpet with a wood or tile floor, is that allowed? What additions and alterations can be made? Beware: far stricter rules apply to apartments than in the 'burbs.
*Pay attention to fire escapes and fire detection equipment.

For unit titles information, call 0800 Unit Titles (0800 864 884), or visit dbh.govt.nz/unit-titles.

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