It’s boring and hard, but it pays off

Just because your back yard has a plot of land you think is big enough to subdivide doesn’t necessarily mean it will be easy money, writes CATHERINE MASTERS

Everywhere you look in Auckland and up and down the country houses seem to be going up on even the tiniest plots of land.

However, just because your back yard has a plot of land you think is big enough to subdivide, doesn’t necessarily mean it will be easy money.

Subdividing might not be as easy as you think – for example, Auckland Council warns it can be a long and expensive process.

There are all sorts of things to consider, such as, what zone are you in – Auckland has a single house zone, a mixed housing urban zone, a mixed housing suburban zone and a terrace housing and apartment buildings zone.

All of these zones mean different things as to what you can do. A single house zone, for example, takes into account things like the historical character of an area, whereas the terrace housing and apartment buildings zone allows for more density.

Once you have figured out the zone, you can tackle what the overall costs of what subdividing might be, and it’s not cheap.

Auckland Council says an average two-lot subdivision can cost around $120,000 to $150,000 for the consent, a new certificate of title, and professional fees and other requirements.

The amount you pay includes things like consent processing costs, development contribution fees, infrastructure connections (water, power and communications), driveways and also fees for the likes of surveyors, planners, lawyers and engineers.

David Wren, a consultant planner based in Grey Lynn, says there isn’t much difference in Auckland from a resource consent point of view whether you have a bare section or whether your section has a house on it which needs to be demolished.

Check out your own council’s rules but the only time you’d need a demolition consent, Wren says, is where it is specifically provided for in the Unitary Plan (which controls what is built and where in Auckland) or if you’re in one of the heritage overlays such as in most of Devonport and parts of Ponsonby, Mt Eden, Grey Lynn and Parnell.

Once you have a vacant site the rules now depend on where you are as to what you can build on the site.

“In most places, not everywhere, but in most cases in Auckland (in mixed housing suburban and mixed housing urban zones) you can build up to three houses on a site without a resource consent - if you comply with everything in terms of distance from boundaries and height and outlook from windows and that kind of thing.”

If you do want to put three homes on your quarter acre section he recommends starting with a planner, an architect or a draughtsperson.

A planner, for example, can let you know if your site is favourable for building before you incur the expense of an architect, and the Unitary Plan can be confusing for a layperson.

“Your planner will give you an assessment of what consents are needed and what the issues are with getting those consents.”

Also beware any private covenants in place in areas you want to build.

For example, if you want a pink house don’t buy land at Jack’s Point in Queenstown.

This illustrious 1200 hectare master-planned development is set on the shores of Lake Wakatipu and at the foot of the Remarkables and various restrictions are in place to protect the landscape.

Scott Freeman, of Southern Planning Group, says newer subdivisions often have some form of private covenant on the title in terms of what and how you can build, covering building size, materials and height.

The restrictions are usually put on by a developer to maintain property values, so if you have a high end subdivision people can’t bring in an old ‘80s relocatable house.

“Private covenants are pretty common things on developments around here.”

There are covenants which control how big your house is to where you can park your boat to where the clothesline can be seen from, he says.

At Jack’s Point, the colour scheme is generally earthy tones, like browns and dark grays, he says.

Queenstown also has rules in its district plan as to what you can do in rural zones. “If you wanted to do a white building that’s a no go. The council wants buildings to be recessive and blend in as opposed to standing out.”