Hi all
I’m in the process of assessing what’s the best development option for a property I own in Mangere East. The existing house is 3 bedroom (1 good size double and 2 x medium size singles) and currently rented for $460/wk. The property has around 700 sqm, so up for minor dwellings, and first checks with council show ok in regards to meeting requirements, driveway access, yard size, carparking requirements, distance between buildings etc.
There are 2 options I’m weighing up…
I’ve received quotes from Initial for around $80k, incl all fees, council consent, removal of existing garage etc (open to suggestions of any preferred suppliers for this kind of garage/sleepout project) Following this one option would be to rent the existing 3 bedroom house plus double garage and 2 bedroom sleepout, approx. rent $610/wk.
Another option would be to rent the 2bdrm sleepout with internal garage access out as separate tenancy for approx $320/wk, with addition of a stovetop cooker and oven, microwave etc. I’m aware that a lot of people do this, but wondering how things go re water/electrical? I was told to stay clear of getting water on a separate meter as this could alert council to a ‘multiple dwellings’ So maybe just get separate power meter, but charge flat rate for water to both tenancies? What about mailboxes? Would having two boxes (i.e 1/45 John St and 2/45 John St) alert the council? How would the tenants be sharing one mailbox?
Approx costs seem to come in around $180-200k. Rent would be around $350/wk.
One concern I have is that someone mentioned when I come to sell that the minor dwelling would place the property into the investor market, and less in the lap of homeowners. Investors tend to pay less, and there’s a bigger homeowner market pool. Do people think this is a real issue? I’m not intending to sell for at least 10yrs.
It sounds like I’d be able to claim tax on the new garage/sleepout, due to it being classed as maintenance, replacing an existing but run down garage. I don’t think adding a minor dwelling would be able to be classed as maintenance!?
I’d really appreciate any advice/feedback regarding these options. I’d also be interested to meet with an investor who has experience with these types of scenarios… dinner/coffee on me!
Many thanks
WFA
I’m in the process of assessing what’s the best development option for a property I own in Mangere East. The existing house is 3 bedroom (1 good size double and 2 x medium size singles) and currently rented for $460/wk. The property has around 700 sqm, so up for minor dwellings, and first checks with council show ok in regards to meeting requirements, driveway access, yard size, carparking requirements, distance between buildings etc.
There are 2 options I’m weighing up…
- Replace existing large but run down garage with new double garage and 2 bedroom sleepout.
I’ve received quotes from Initial for around $80k, incl all fees, council consent, removal of existing garage etc (open to suggestions of any preferred suppliers for this kind of garage/sleepout project) Following this one option would be to rent the existing 3 bedroom house plus double garage and 2 bedroom sleepout, approx. rent $610/wk.
Another option would be to rent the 2bdrm sleepout with internal garage access out as separate tenancy for approx $320/wk, with addition of a stovetop cooker and oven, microwave etc. I’m aware that a lot of people do this, but wondering how things go re water/electrical? I was told to stay clear of getting water on a separate meter as this could alert council to a ‘multiple dwellings’ So maybe just get separate power meter, but charge flat rate for water to both tenancies? What about mailboxes? Would having two boxes (i.e 1/45 John St and 2/45 John St) alert the council? How would the tenants be sharing one mailbox?
- Remove existing garage and add a minor dwelling.
Approx costs seem to come in around $180-200k. Rent would be around $350/wk.
One concern I have is that someone mentioned when I come to sell that the minor dwelling would place the property into the investor market, and less in the lap of homeowners. Investors tend to pay less, and there’s a bigger homeowner market pool. Do people think this is a real issue? I’m not intending to sell for at least 10yrs.
It sounds like I’d be able to claim tax on the new garage/sleepout, due to it being classed as maintenance, replacing an existing but run down garage. I don’t think adding a minor dwelling would be able to be classed as maintenance!?
I’d really appreciate any advice/feedback regarding these options. I’d also be interested to meet with an investor who has experience with these types of scenarios… dinner/coffee on me!
Many thanks
WFA
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