sharetrader
Page 3 of 8 FirstFirst 1234567 ... LastLast
Results 31 to 45 of 114
  1. #31
    Guest

    Default

    Duncan If the buyer is Savvy you would never sell the property afterwards. Check the legalities. I have caught many real estate agents on this one.

  2. #32
    Advanced Member
    Join Date
    Jun 2004
    Location
    Auckland, , New Zealand.
    Posts
    2,431

    Default

    ENIGMA, The legalities are in the area mentioned are, one title, 65 sq metre max size minor dwelling to be built within a certain distance from the main dwelling. In some areas a water tank to take flood water, and discharge it at a reduced rate to not overload the system. You can have a sep footpath crossing and hook into the power from the origonal house. Most people dont do this, as sometimes the line is not up to it. In other areas of auckland the max size is greater than 65 sq mtres. I built about 30 of these mainly in east auckland, with no problems before or after. One title means you cant sell one without the other, but it is a good way to maximise your return on a rental property large enough to accomodate this. The 65sq metres is living area only as i said stick the laundry in the garage. macdunk

  3. #33
    Guest

    Default

    Legally it has to be a familly member resident in most cases. I have been to the councils on several of them and this is the answer I get. So possibly a familly member of the tenant if rented out. Or a familly member of the owner if owner occupied. I have looked at several and have good lawyers the say do not touch with barge pole. Please get your own independant legal advice.

  4. #34
    Advanced Member
    Join Date
    Jun 2004
    Location
    Auckland, , New Zealand.
    Posts
    2,431

    Default

    Probabely where you come from but not here. You build it and rent it out to anyone. All the ones i built thats what happened with quite a few being onsold, and a few subdivided later. I suppose it depends on your council, and where you are, even in Auckland the rules change from one area to the next. macdunk

  5. #35
    Guest

    Default

    Duncan I am talking about New Zealand Auckland My lawyers Are very good You get a permit for a granny flat and rent it out to others you may find you have big liablities Even the Fire regulations are different in some cases. Yes you can do it until somebody wakes up. Subdivision later is probally the best way of legallizing the cituation if possible.

  6. #36
    Junior Member
    Join Date
    Feb 2000
    Location
    , , nz.
    Posts
    23

    Default

    I have invested $150 grand in a property syndicate that owns a commercial prop (is a Cinema Complex with 4 movie theatres). The building is valued at 2 million, the rent we get is 200K a year, because we own 50%, the other 50% is borrowed & the interest on that million is 7% I think, --the impact of this is that myself & the other investors get about 11% return on our $$$. So, the deal is pretty sweet so far. A local Accountancy outfit deals with the tenants who are a fairly big player in the cinema industry at a cost to us of 5 grand a year. The only problem that I can anticipate is if the 1 mill at 7% ever goes up to over 10% this will knacker our return (though we could always buy that extra portion ourselves, or get more investors in). So far (3 years) it has been good, get a cheque every 3 months & no hassles.

  7. #37
    Member
    Join Date
    Jul 2004
    Location
    , , .
    Posts
    91

    Default

    good for you mate, looks like a nice little earner.....i've found property investing to be like going to the rugby, there are 30 people actually playing the game and 35,000 sitting in the stands on the sideline who all have an opinion on what the 30 on the field are doing wrong.
    if not you now who when..

  8. #38
    Junior Member
    Join Date
    Oct 2002
    Location
    , , New Zealand.
    Posts
    29

    Default

    quote:Originally posted by ENIGMA

    Duncan I am talking about New Zealand Auckland My lawyers Are very good You get a permit for a granny flat and rent it out to others you may find you have big liablities Even the Fire regulations are different in some cases. Yes you can do it until somebody wakes up. Subdivision later is probally the best way of legallizing the cituation if possible.
    Enigma, you may need new lawyers.
    In most council areas, Manukau, North Shore, Auckland, there is nothing in their District Plans to my knowledge, that says a Minor Household Unit Granny Flat)is only for the use of relatives. Franklin District had a requirement that the minor unit (70m sq max)is used by only relatives or farm workers, although their new plan change seems to have dropped this restriction. The fire regulations DO NOT vary in NZ. Every building comes under the NZ Buiding Act. But one thing to watch though, is whether there is fire seperation where the flat is attached to or in the main dwelling, as this requirement can be waived where the owner states that the flat will be used only by a blood relative and the council granted a building regulation waiver. THIS MAY NOT BE NOTED ON THE TITLE.

    Years ago Manukau City used to be quite tough on Granny Flats and you had to have a clause inserted on the Title stating that the property was a single household unit, then they removed this requirement in the early 90's. Then because too many people were building granny flats as home and income, thus putting a strain on services, etc, Manukau City last year made a change to their District Plan and now all new minor household units (60m sq max) are treated as subdivisions, and you now need seperate drainage connections and make contributions for sanitary and stormwater services. I think you may even be rated as 2 properties although you may never be able to sell them off seperately if your section size is below that allowed for subdivision. This has made it very expensive for people wanting a genuine granny flat.

    Even if the current District Plan states a Granny Flat is for relatives only, the particular flat may have 'existing use rights' as it depends on the rules when it was constructed.

    Hope this helps you.


  9. #39
    Senior Member
    Join Date
    May 2005
    Location
    anzac
    Posts
    1,210

    Default

    For brick buildings come to Paraparaumu..[8D]

  10. #40
    Guest

    Default

    Dinosaur they picked holes in existing properties I was looking at. But most people assume you can just rent them out. So general advice to do what Mac Dunk suggested needed to be tempered with some extensive checking. As many land agents said yes selling as home and income potential. But solicitors said no way. All properties have to be extensively researched. I have even had a builder of new homes that did not know regulations.

  11. #41
    Junior Member
    Join Date
    Oct 2002
    Location
    , , New Zealand.
    Posts
    29

    Default

    Yes I agree Enigma. The main word in those types of property notices is "potential". As I pointed out, with changes like Manukau has implemented, that potential could be very expensive to realise.

    Each property does need to be researched, but if the Granny flat is free standing (which Mac Dunk was talking about)and at least 2m from the main dwelling and the kitchen has been permitted, as opposed to a sleepout that has had a kitchen added without a permit, then it is most likley you can let it out to the general public. If a flat within a home has been specifically built and consented with the appropriate fire ratings installed, then there is no reason whey that too cannot be a home & income.

    In the Botany area in the late 90's, early 00's a large number of homes were constructed with legal minor household units attached to the main dwelling so as to be home and incomes. The min section size to do that 'as of right' was 600m sq. So many in fact, were being built that in future stages of the subdivision, the developer reduced the section sizes to under 600m sq to stop it from being done, as the covenents couldn't stop it.

  12. #42
    Advanced Member
    Join Date
    Jun 2004
    Location
    Auckland, , New Zealand.
    Posts
    2,431

    Default

    DINOSAUR, I have an idea that you may need to question the advice you are getting. Personal experience from someone that did it. I built about thirty 2brm granny flats complete with garages or car ports in the eastern suburbs of auckland two further south, three in rodney. All were rented out as income producers, some through reinz agents some properties were on sold etc etc etc. One buyer bought about 27 in total, over a three year period, he only bought properties that he could build a grannyflat on then onsold the properties with absolutely no problem what so ever. The rules and sizes are different from one suburb to the next, but most places in the Auckland area it is 65 sq mtrs living area. Land cover comes in to it normal height restrictions apply you can connect services to the existing house, ex one power meter and one water meter for both houses. Or if it is rural connect to the existing septic tank and save yourself a fortune. It is for the switched on investor. By the time the herd wake up they will have rules to stop it. The one thing my investor got out of it all is he now is a master builder because he successfully did all those homes problem free. If you want to worry about something worry about that. macdunk

  13. #43
    Junior Member
    Join Date
    Oct 2002
    Location
    , , New Zealand.
    Posts
    29

    Default

    Macdunk. My advice is correct, I'm involved directly, although haven't done a minor unit in Rodney. Yes I know you can put garages verandahs on etc.

    The rules USED to be quite slack but are/have changed re minor household units (MHU) as councils are using the RMA to control infill housing. Especially Manukau, as mentioned, where the size for a MHU is only 60 sq mtrs and you now have to apply for a subdivision consent, even though you are not subdividing as such. It's getting harder all the time. ARC have also got envolved on rural lots re septic tanks which even effects a straight bedroom addition. Have to get the current system assessed now.

    Point taken on the MB bit. Just like mechanics, there are some good ones and bad ones. Personally I prefer Certified Builders, which you can't join just because you built a house or two, but the Building Practitioner regime will change everything beginning 2007.




  14. #44
    ronaldo
    Guest

    Default

    Quoted rental returns are misleading.Its always the gross return.Nett should be quoted as expenses are considerable,rates insurance,maintenance.vac while awaiting tennants or repairing.Return on property investment is only worthwhile because of Capital gain.Thats what its all about.Forget about the rental return-better to have money in bank.Capital gain is what makes it worthwhile

  15. #45
    Advanced Member
    Join Date
    Jun 2004
    Location
    Auckland, , New Zealand.
    Posts
    2,431

    Default

    RONALDO, You are pretty near to what it is all about. Capital gain is the profit. rent is living expences. Juggle the two with someones elses money work out the numbers and do it. macdunk

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •