added value of of subdivision resourse concent?

[phillip30]

Hi All,

would appreciate your thoughts. I have a property that i am looking at sellingin titahi bay wellington that I could likely get a resource consent forsubdividing and creating a new section. the current property is a 80m squarehouse on a 900m section, the new section would be the back and about 500m witha outlook over the water. Wondering if this is worth pursuing or whether Ishould just look at selling now. Realise it’s hard to provide any definitiveanswers without seeing the property but wonder if a consent is likely to beworth the time and effort.

any thoughts appreciated.

thanks

Phillip

[Orkibi]

Wondering if this is worth pursuing or whether Ishould just look at selling now

do your homework on the supply and demand for sections in that area...
i remember in the last cycle many developers got stuck with sections in the Wellington area...
the demand is nt as strong as Auckland.

selling the concept maybe a better low risk option, provided you can still make reasonable money out of it.

[phillip30]

thanks Orkibi, will do my homework. to get a resourse concent was estimated at about 3k, my thoughts were the risk is not to great money wise but mindful of the time etc involved.

[Bluekiwi]

I am looking at same scenario in Auckland.
But this is how I would play it, if demand is there.

Have a subdivision report done, about 1k to find out if their is subdivision potential, as services or other rules may nobble you.
If you, you could then sell with this report attached, as I have done.

Next step, is to spend 15k and 3 months and get Resouce Consent.
Which is what I am doing right now on another, and then i will decide from there.

Resource Consent and pre-apppication meeting will show you what needs to be done to subdivide.
Then you can either sell the whole lot.

Or, if this is a rental, you can get a sale now (conditional upon title) of the new lot and work through the subdivision cost yourself, get it done by the pro's.

[phillip30]

thanks Buekiwi, some good suggestions. I will follow these up, had not thought of the report.

[kiwibean]

I am also in the same boat, bought a property in T Bay with a section overlooking the water for subdividing. I think I will be doing it myself and building a new house on the back.
I have spoken to the council which gives you the answer of you might be able to or might not, seems like how they wake up that morning has a lot to do with it.

[phillip30]

thanks kiwibean, can be a challenge getting clear answers. Imagine the return would be much better following through, just need to balance with the timeframes etc.

[Eugene]

You will pay tax on the capital gain. Profits from subdivision

[phillip30]

thanks Eugene, the tax side obviously needs consideration