Unit Titling Developments

[Davo36]

Does anyone here have any experience in unit titling a property?

I am thinking of going a bit further with my development out at Papakura and putting them on separate titles.

What I wanted to do was get the unit titling consented but not actually pick up the titles, because when I do I would expect the rates to double or tripe or worse - because the units will be individually rated as opposed to it being rated as one property.

And I wanted to have all this approved fairly shortly while all the building rules are as they are so that I don't have to undertake further building works down the line to pass the unit titling provisions.

I have spoken with my planner and a surveyor recommended to me. They are saying:

• I need a new resource consent. Aaagghh. As part of this the council need a scheme plan drawn up. The council will then come back with all the conditions they feel need to be filled (been down this road before...)
• Once I have resource consent, a more detailed plan is done and submitted for approval under section 223 of the RMA.
• This plan is good for 3 years. At some point during that time, it can be lodged with LINZ who approve it. You then get a 224 certificate from the council which is their final signoff and your solicitor can then use that to apply to LINZ for separate titles.
• The various Auckland councils charge the increased rates at different times. So some councils charge the increased rates when the development is complete i.e. when CCC is issued. Other councils do it when the titles are issued. And so with the merging of the councils, it's unclear what will happen, which approach will be taken.

Does anyone have any guidance with this whole process? Like how easy or hard it is to do?

I'd also appreciate people's comments on when the rates recalculation takes place. I'd be keen to avoid that for as long as possible of course.

[graemeh]

I'd also appreciate people's comments on when the rates recalculation takes place. I'd be keen to avoid that for as long as possible of course.

In Wellington it has been from the start of the next rating year. I believe this is because the council has already set the rates for the year.

If that also applies to Auckland I'd say that you can delay the new rates by almost a year just by timing your paperwork to take effect after the council cutoff for setting the rates.

[eri]

papakura currently has some of the lowest rates in the super city

presumably they will have the biggest catch-up to do in 2013? when they "level" the rates

something to keep in mind...

[Dean@Massiveaction]

I've done it a few times Davo. It is likely that your current project will more or less comply so hopefully it is a lot of paper shuffling.
IF apartments are al separately metered for incoming and outgoing water etc. it is fairly straight forward as you will already have fire rating issues sussed.Biggest headache is going to be council, especially in Pkura.
You'll definitely need a new consent and then if it complies it is just fees to pay.

[Davo36]

thanks for the comments guys. I got some costs from the surveyor guy. How do these costs look?

1
Prepare Scheme plan & Resource Consent Application

$ 3500

2
Council Resource Consent application fees

$ 4000

3
Preparation of Unit Title plans and documentation.
Obtain 223/224f/224c/5(i)(g) certificates

$ 10000

4
Valuation fees (Unit Entitlements)

$ 1500

5
Council Plan signing and 224c release fees

$ 2500

6
LINZ lodgement fees

$ 750

7
Legal fees (issue of titles, body corporate setup costs)

?

That's about $25k to split up 5 titles. Does that sound about right?

[rueben]

Would the council charge you more development levies or have you already paid enough for them? I'm thinking they could say because you are splitting the titles it is then another "dwelling".

Just a thought...

[Davo36]

Well I have to pay reserve contributions on the apartments whether I subdivide or not. This is a new rule they brought in so that they get their money up front. Lovely.

And then development contributions. Was a 'debate' and they went and got a legal opinion and everything and lost. I am liable for $0 whether I subdivide or not.

[Dean@Massiveaction]

For Auckland that's cheap man, do it :-) !!

[egan123]

I've been thinking about this Davo, the costs lok about right. However the 10K part seems about $1.5K high, also I have it on good authority that it is a nightmare within building control right now, (new city) kind of caught between a rock and hard place, do you, or don't you. Me, I'd give it a go, may get bogged down for 12-18months, but what the hell, its only a MIGHT get bogged down. This reason for a 223-224c is sound and they have done this heaps of times. I did one and held the execution of boundry's for the length of the lapse of consent so as not to pay the extra rates, then when the time was right, executed, and sold. The very best of luck mate. I'm with you on this one.

[Davo36]

For Auckland that's cheap man, do it :-) !!

Dean, do you mean the surveryor's costs are cheap? Or did you mean the development/reserve contributions are cheap?

[Davo36]

I've been thinking about this Davo, the costs lok about right. However the 10K part seems about $1.5K high, also I have it on good authority that it is a nightmare within building control right now, (new city) kind of caught between a rock and hard place, do you, or don't you. Me, I'd give it a go, may get bogged down for 12-18months, but what the hell, its only a MIGHT get bogged down. This reason for a 223-224c is sound and they have done this heaps of times. I did one and held the execution of boundry's for the length of the lapse of consent so as not to pay the extra rates, then when the time was right, executed, and sold. The very best of luck mate. I'm with you on this one.

Hmmm, this makes it sound harder than I thought...

12-18 months? Geez I hope not.

I might wait unitl I've got the building finished, the CCC etc. and look at doing it next year.