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  1. #11
    Join Date
    Oct 2013
    Posts
    1,628

    Default

    Quote Originally Posted by Wayne View Post
    Advice is a good idea.
    If you subdivide later the brightline rule may kick in again as the section is then 'new'.
    Remember I said MAY - I'm no expert here but something to think and ask about.
    Nope! One of a few sensible parts of the Bright Line rules. Purchase date is the original purchase date of undivided land.

    But always pays to speak to a tax expert when doing anything remotely complicated with property.
    AAT Accounting Services - Property Specialist Accounting - AATAccounting.co.nz
    Lower fees for investors, traders & real estate agents!
    [email protected] for more information.

  2. #12
    Join Date
    Jun 2004
    Posts
    10,416

    Default

    Thanks Anthony

  3. #13

    Default House

    I've got a rental with 912m2 section where the house is on one side and the other side is a vacant backyard. I want to do "something" with the spare land. It's in Auckland Mixed Urban zone, big enough driveway, etc.
    I haven't subdivided or built before and I'm still confused with all the options.

    If I wanted to sell the vacant half of the section I understand I need to get a "title". Is that the same as "subdivision"?

    Can I get the title without providing all the services (power, water, sewage connections)?

    If instead I wanted to build on that land - do I have to subdivide first? And if I don't subdivide can I still build a bigger house than minor 100m2 dewlling? It costing around $200,000 for subdivided thats to much money

    Essentially I want to either free up money sitting in the unused land or generate some cash flow from it. What do you suggest?
    Or if i can remove my house to the front dont kniw the cost thanks

  4. #14
    Join Date
    Jun 2004
    Posts
    10,416

    Default

    Quote Originally Posted by Mariam View Post
    I've got a rental with 912m2 section where the house is on one side and the other side is a vacant backyard. I want to do "something" with the spare land. It's in Auckland Mixed Urban zone, big enough driveway, etc.
    I haven't subdivided or built before and I'm still confused with all the options.

    If I wanted to sell the vacant half of the section I understand I need to get a "title". Is that the same as "subdivision"?

    Can I get the title without providing all the services (power, water, sewage connections)?

    If instead I wanted to build on that land - do I have to subdivide first? And if I don't subdivide can I still build a bigger house than minor 100m2 dewlling? It costing around $200,000 for subdivided thats to much money

    Essentially I want to either free up money sitting in the unused land or generate some cash flow from it. What do you suggest?
    Or if i can remove my house to the front dont kniw the cost thanks
    To 'get title' you have to subdivide the land into two bits.
    To subdivide you will have to supply services.

    Personally I would subdivide and build myself. As to whether removing the front house also is a good idea you'll have to access that yourself.
    It may be that you can clear the section and build multiple dwellings on the total section maximising use and cashflow (without subdividing - unit title maybe).

  5. #15

    Default

    Build first and subdivide later.

    You need to cover all the bases so talk to a land surveyor and get the correct location for the building that will comply with requirements later.

    subdividing costs 100k but if you build first and rent then you have income while the subdivision can proceed in time or just sell both buildings on the same title.

  6. #16
    Join Date
    Feb 2013
    Posts
    350

    Default

    yes build first and sudivide later, keeps the costs down initially when doing the build. Cross check everything with expert
    land surveyor etc.

    But ask your self this, whats my long term plan, if you want to build and sell, do you know the complexities of new build, escalating costs, delays etc?

    If not, sometimes you can let the buyer do the sub division for you.

  7. #17
    Join Date
    Oct 2007
    Posts
    363

    Default

    Some councils will require each house to have a separate title in some or all zones--so you need to find out if the local district plan will allow you to build before subdividing

  8. #18
    Join Date
    Jun 2004
    Posts
    10,416

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    Quote Originally Posted by motivated View Post
    Some councils will require each house to have a separate title in some or all zones--so you need to find out if the local district plan will allow you to build before subdividing
    "Auckland Mixed Urban zone"

  9. #19

    Default

    Hi Wayne. In Auckland Mixed urban Zone, you allow to build total three dwellings in your section. If you are building more than 3 buildings, than you need a Resource Consent for that. And if you are building less than 3 houses, if your section is located in the Stormwater Management area (SMAF), Overland Flow path, Flood hazard or Contaminated land, you need a Resource Consent.

    Check with Council Planner first what requirement (free 15 minutes advise ), they let you know what requirements.

    Otherwise, feel free to PM me the details to see I can help.
    Mark
    Civil Engineer specialized in Land Development/Subdivision
    Last edited by MarkD; 13-02-2019 at 07:32 AM.

  10. #20

    Default

    Firstly if you wanted to subdivide land only and sell for profit you would it would need to be 400m2 minimum which may not be possible due to the positioning of the original house / driveways etc. Yes, you need to provide all services / contribution / legal title etc and the cost to do this is anywhere from $100-$175K. Unless this is your own home and you've owned for >10yrs that would be subject to taxation.

    If you can't get 400m2 cleanly and you are not in a "single house" unitary plan zone you need to supply a build design to council to show that a dwelling could work on a smaller area (this is to stop people selling undevelopable plots). You would need building consent to build and resource consent to subdivide it. It would have it's own title along with the old property and could be sold (taxed) or retained (no CGT <5yrs at the moment)

    Secondly if you just want to build a "minor" dwelling, no you don't need to do any of the subdivision legal / contribution stuff. You do need a building consent for anything >10m2 and with kitchen facilities. You need resource consent if it breaks any rules e.g. height to boundary, too close to boundaries etc. You could rent this out, but you can't sell it separately.

    Really depends on what you want out of any development. e.g. pay off debt
    Last edited by CraigD; 05-03-2019 at 01:12 PM.


 

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