my first subdivision

[crashy]

Ok, so the property I just bought has resource consent for subdividing into one front & one rear section (each with an existing building) which expires in a few months.

So I'm guessing a large chunk of the hard work is already done. The vendor has provided a quote they received which covers ripping up the old (perfectly good) driveway and laying a new one that "meets council standards in it's place", fencing and drainage pits. $23k.

Now, how much will council (whangarei) want? How long are they likely to take to do it?

If I have no immediate plans to sell either property, am I just wasting money? Would it be so bad to let it expire and start again sometime in the future? "Oh but you would have more equity". Fat lot of good that does me.

[crashy]

The rates breakdown shows 2 sets of the same fees. The regular fee, then a "multi unit" fee. Almost as though it's already been split. One building is a dwelling, the other a garage. Is this weird? Do they hit you for extra rates the second you apply for resource consent?

[Rosco]

Go and see a planner to get the full information and costs.

It is a difficult question to do it now or wait. If you wait, rules could change and costs will change! If you do it now then as you put the properties should overall be worth more, which should give you more equity, which could enable you to invest further elsewhere. But obviously you have spent more money, so have a bigger loan and more interest costs.

The basic figure I work on for subdivisions is a $50k cost, but there are obviously lots of different councils with different costs, sewerage, power, driveway requirements and lots of other hassles!

Ross

[crashy]

Thanks. I've done some research by looking at rates for other properties in the street. Seems whenever there is 2 buildings let separately, these rates apply (I'm assuming that is the logic). What was interesting is that one section with 2 dwellings was renamed flat 1 and 2, each with a 50% share of the land. Total rates here were about 10% higher but total valuations were much higher. Properties with 2 dwellings on one title seemed to have no increase in valuation over those with one.

Anyone know how a "building" becomes a "dwelling" or "minor dwelling"? Is it when a bathroom is added?

50k wow. Makes it uneconomical.

New question. If left as one title, can 2 dwellings and 2 minor dwellings be built?

[Davo36]

Cost to do a simple subdivision in Auckland is $100k to $120k.

Others have posted here saying so.

The water meter 'infrastructure growth charge' is $12k alone.