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Best Options for Minor Dwellings
I am looking at an opportunity in Waitakere City on the basis of adding a minor dwelling at the rear of the existing house. The section is flat and just over 800m. Other than Waitakere City Council what are the best sources of information on how to go about this and on figuring out how much it would cost?
You may want to talk to Keiran who has a company that specializes in just that.
Your choices are either to organise your own building plans, architect, surveyor, engineer etc,etc,etc or use a turn-key solution such as my Minor Dwelling company offers (see http://www.hybridgroup.co.nz/Service...ovingCashflow/) .
We take care of the complete process and have a fixed price (currently $99,500) to build a purpose designed 3brm according to our own plans and specs. We have put much thought into creating a superior product rather than a glorified garage! Of course there are also some site specific costs like drainage, services etc,etc.
We are achieving superior rents of around $320/week for our Minor Dwellings, but they are a superior product.
You should probably budget to spend $125,000 to $135,000 all up once you include all the site costs (ie drainage,services etc,etc).
I hope this helps.
I was wondering how you get on with the properties valuing up after the addition of a minor dwelling? I have been speaking to my valuer in Hamilton and he says 150k (existing dwelling) + 100k (Minor dwelling) does not equal $250k, but more than likely you will only get around 80% of your minor dwelling costs converting to equity.
What is your experience with values?
Also, do your cost estimates include any site development such as car-ports, recreation areas, fences (between the dwellings) etc? Do these items have an effect on the total value of the property?
I see mention of 65sqm dwelling (and the 2 or 3 bed argument) in some of your writings. Is that specific to a particular region? I always understood that minor dwelling are to be under 60sqm. Is any decking area included or excluded from the floor area?
Great questions and nice to hear from you. (Let me know when you are next in NZ as we haven't caught up for a long time!)
1) Values - You need to find a valuer who recognises the value of the extra dwelling correctly. We found many valuers had no real understanding of what we are achieving by adding the Minor.
The valuations we are getting are reslistic and reflect the additional value created by enhancing the cashflow as well as the increased building value (not quite a commercial valuation but kind of a mix between residential and commercial if that makes sense).
We have also 'trained' the banks our mortgage broking company deal with so they clearly understand the value equation we present, and we have found them to be very understanding but they know how we operate (ie we are unlike traditional developers who sell highly negatively geared properties... ours actually make financial sense!)
2) Cost estimate of $125k - $135k all up should include all site extras as you mentioned. Carport, fences etc seem to have only a marginal effect on the value.
3) Size is council dependant and in Waitakere city we can build 65sqm. This figure excludes any deck.
Thanks for the advise, will be in touch if I can secure the property or should I sat as soon as I secure the property (think positively!!). What are typical lead times from first conversation to handing over of keys? Does your firm take care of all necessary consents etc?
We provide our purpose designed plans which maximise the use of floor space. We manage the entire process of co-ordinating all parties to achieve the end result of a completed building (everything except curtains). This includes using the master builder who builds to our specs.
Our builder is the project manager and he supervises the building work. He also assists us to pull everything together to achieve relevant consents etc,etc.
Timeframe from initial converstaion will vary but can take 2-3 months depending on the councils further requirements prior to issuing consent ie arborist report re trees or their driplines, engineers reports etc,etc.
But our builder contractually must commence building within 4 weeks of building consent being uplifted and then must complete the entire build within 16 weeks (or else they start paying rent until completion!).
So for your complete timeframe you should probably allow 6 to 9 months.
Hope that all helps and all the best with finding a suitable property.
(Of course my property sourcers are trying to find them too!)
Minor unit / sleepout.
Along the same lines as this there was a discussion last week [or so] about sleepouts/minor dwellings & the like.
Just heard that Rodney [in rural anyway] have grouped sleepouts & minor units all as one so they get the dev. contr. on them.
Therefore if you have a sleepout - no kitchen - it will still attract the same dev. contr. as a granny flat [completely self contained]. It's not a tho you would rent out the sleep out as a seperate family unit - they get ya by the goolies anyway they can.
Trust me!! I'm trying to get back there as fast as I can!! I'm absolutely gagging to get amongst it, not least of all a couple of Minor Dwelling opportunities. I've just raised a $100k LOC so I'm ready to rock and roll.
Problem is, too many births, deaths and marriages happening here at the moment. Plus they want to offer me a new position here at work.
June/July 06 is our latest ETA, but I'd prefer earlier.
When is Hybrid going to expand into Hamilton? Your services are needed down there!!
The Dog (or Stuart?)
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