sub divide in Auckland - buying the property directly behind my existing home

[Retired and bored]

HI Guys, and Gals
I own a property in Epsom, which has around 883 Sqm of land with existing house and pool, which is zoned 5 - one dwelling. the property directly behind (875 sqm and zoned 6A) me is up for sale, and I am considering buying it and build 3 units, buy giving around 200 SQM to the property behind.

so my existing property is 883 sqm, I plan to make it 600 sqm, which will then allow the property behind me become around 1158 sqm, or 386 sqm each unit.

Any ideas on what the council would want to charge for this ? should I allow $100K or $300k ?
and then who do you recommend I go to - to get indicative costs on building the said 3 units?
if I allow $500k each unit for building, driveways, sewerage, ETC, orif I allow $600k for each unit as an all up cost - does this sound reasonable?
I don't expect a definitive answer from anyone - but I guess that someone has done something similar and has some experience.

or - should I just offer the land to the selling agent to notify developers that the land is for sale - sell the land and let them have the head ache of subdividing and building.

I guess if I could sell the back portion of my property it would be a fairly quick and easy process, but then again maybe not?

any ideas ?

[Damap]

Given your location the answer is surely to buy the back then sell to developers with your land added in. You'll probably make more than doing the dev yourself.

[Retired and bored]

Hi Damap,
That's a good suggestion, and I would assume a hell of a lot easier than developing myself.
Thanks

[Wayne]

Hi Damap,
That's a good suggestion, and I would assume a hell of a lot easier than developing myself.
Thanks

Don't forget the tax.
Won't help the boredom though.
If you develop and build for long term rental then probably not taxable.

[ben9465]

Of the new lots created you will need to pay 7.5% reserve contribution fee. So 1 section into 3 means two new lots which may be worth $700k each so about $50kx2 of reserve contribution fees. Development contribution and watercare fees may be $45k x2. So you will probably be up for about $200k to council just for creating 2 sections. Surveying , drainage, legal, engineers, may add another $60k so say $260k all up. It may take a year to get it all done. I would just sell the sections without building unless you have some experience in building. A new 240m2 average house will cost about $450k for average specifications and design.

[Retired and bored]

Hi Ben,
Thank you so much for this information, it gives me so much more info than I had. I've done extensive renovations before on a few houses, but never sub division, so it is very different. I have many options and information now.
I can do the sub division which should nett me 1 m or sell part of my block to developers for 400 k or do nothing, and save the headache. Thanks to all that responded. Cheers

[Wayne]

Of the new lots created you will need to pay 7.5% reserve contribution fee. So 1 section into 3 means two new lots which may be worth $700k each so about $50kx2 of reserve contribution fees. Development contribution and watercare fees may be $45k x2. So you will probably be up for about $200k to council just for creating 2 sections. Surveying , drainage, legal, engineers, may add another $60k so say $260k all up. It may take a year to get it all done. I would just sell the sections without building unless you have some experience in building. A new 240m2 average house will cost about $450k for average specifications and design.

This is a symptom of Aucklands issues.
In Hamilton total cost, including development contributions etc, is about $55k for 2 additional sections (that includes surveyor etc).

[robert786]

i plan to build house at rear on my 675 plot which is having house in front in howick, can anyone guide whether it is worth?

[Wayne]

i plan to build house at rear on my 675 plot which is having house in front in howick, can anyone guide whether it is worth?

Add up the total cost (investment) and compare to the return to see if it is worth it.