Subdivision

[Dazza]

Guys could someone eg macdunk educate me regarding subdivision etc

was watching the 7pm sunday channel 1 show - proeprty climbers

and they were talking about zone living 2, and how u can subdivide the property etc

how/where do we find out about what 'zone' a propery is and what does it all mean etc

i notice in central auckland, houses are advertised as like 5A etc

[bear]

Guys could someone eg macdunk educate me regarding subdivision etc

was watching the 7pm sunday channel 1 show - proeprty climbers

and they were talking about zone living 2, and how u can subdivide the property etc

how/where do we find out about what 'zone' a propery is and what does it all mean etc

i notice in central auckland, houses are advertised as like 5A etc

Dazza

Every property in the country owned by someone has a zone which is identified in the Local Councils District Plan. The district plan identifies not only the development controls for buildings such as density of development and max height of structures for example but also subdivision rules that apply.

The rules as you could imagine vary from area to area and Council to Council with the best source of information other than a land surveyor (which you will need anyway) being the relevant local Council.

most councils have this information available on their websites or you can ring an speak to one of the town planners. They can help you most effectively when you have a property in mind. Some land surveyors are more than capable of providing you details but their cold be some costs.

there are lots of costs involved in subdividing a property some of which will not always be apparent.

These include
Application fees
Application preparations costs which can include a planning consultant, Engineers reports - covering traffic, wastewater, geo tech, etc.,
Development contributions
Legal costs - Titles
LINZ fees
Surveyor costs

Essentially you need a fair amount of $$$$ :Dbefore considering it as all these costs need to be paid for before you get the new properties title assuming it gets approved in the first instance

Trust this helps

Bear:)

[Steve]

Don't forget that there can also be tax issues with subdividing...

[dartMonkey]

Try this for zoning etc: -
http://www.aucklandcity.govt.nz/council/documents/default.asp

[ari]

Actual costs of 1023m2 site subdivided on the North Shore were $35,528 ie (Survey $9,928 & Council $25,600) 3 years ago, and that is cheap at todays costs!!
The $25,600 icludes all Council costs to final signoff of 2 houses.

[denpal]

In Manukau for a multi-unit site budget on $60,000 per site excluding GST for subdivision infrastructure, surveying, engineering, council contributions & consent fees, interest, professional fees, agents fees, marketing etc, etc. On top of that add the purchase price of the subdivision block. These costs are for a level block and 6-12 x 400 sq m sections.

[duncan macgregor]

If i were to give advice on subdivision or developing property without knowing their expertease level it would be very bad advice indeed. Developing new property requires a complete understanding of the council rules and requirements for that particular area. I would venture to say if you have never been through that process you are in for a few rude shocks. You are forced to pay for things beyond your wildest imagination, get caught up in a great web of red tape so unless you are with it forget it. Most councils will be as awkward and costly as they can be, in the end you will end up tearing your hair out, and wonder why you ever bothered in the first place.
NZ building industry is a total shambles with houses costing [because of all the crap] one third higher than its Australian counterpart. Double glazing, walls and ceilings smothered in insulation in sub tropical areas. The cost is now beyond the reach of young couples starting out in life. Most of the home of the year awards in the past are now suspect leaky homes. All your builders and carpenters are heading overseas, if i was still in the game thats where i would, be good luck potential developers you will need it. Macdunk

[denpal]

If i were to give advice on subdivision or developing property without knowing their expertease level it would be very bad advice indeed. Developing new property requires a complete understanding of the council rules and requirements for that particular area. I would venture to say if you have never been through that process you are in for a few rude shocks. You are forced to pay for things beyond your wildest imagination, get caught up in a great web of red tape so unless you are with it forget it. Most councils will be as awkward and costly as they can be, in the end you will end up tearing your hair out, and wonder why you ever bothered in the first place.
NZ building industry is a total shambles with houses costing [because of all the crap] one third higher than its Australian counterpart. Double glazing, walls and ceilings smothered in insulation in sub tropical areas. The cost is now beyond the reach of young couples starting out in life. Most of the home of the year awards in the past are now suspect leaky homes. All your builders and carpenters are heading overseas, if i was still in the game thats where i would, be good luck potential developers you will need it. Macdunk

Yes it's a minefield of things that can trip you up and cost overruns........you shouldn't do it unless you have a very good professional surveyor with recent experience in your area to assist you. My property company doesn't bother building houses, just subdivides into sections and sell vacant.......a lot less hassle and good business if you know what you're doing. Compared to the sharemarket risks are quite low and good leverage ie L/V ratio is to be had even now.

[Dazza]

Cheers for all the advice guys

guess ill just do the buy and hold strategy :D maybe add minor dwellings instead :P

[Steve]

Of course, a downturn in the property market could make it a ripe time to pick up some land with subdivision potential for when things pick up again...