Question on Home & Income

[newbieinvestor]

Hi all, I'm new to the game... I'm looking at a home & income property in Auckland. Upstairs is 2 bedroom with kitchen. Downstairs 3 bedroom with another kitchen.

With Auckland City Council, I think having 2 kitchens is not legal and the agent suggested if I changed the upstairs kitchen to a 'kitchenette' - Then it'll be legal. My intention is to rent both flats out separately...

I don't know too much about properties (yet). So I was hoping someone from this forum can help me with this....

[RentMaster]

Hi newbieinvestor

Does the 2 properties have separate power meters? If not I believe it can be reasonably expensive to do. Do they have separate water metres? I also think there needs to be a fire proof floor between the 2 properties if it does not already have one.

I am sure other people who have done this will be able to elaborate further.

Good luck

[srv]

If it ain't legal I wouldn't touch it. You could experience problems with insurance & the council...

[BusyLizzy]

Check with the council.... but to make it into a kitchenette probably means removing the stove/oven, I would think. If that is the case, check to see if you can then have one of those small bench-top electric elements (like you find in some motels).

It could always be rented as a single-tenancy house - but target it at extended families (ie a family with elderly parents who want to live with the family), or a family with old kids still living at home, or two couple/small families who wish to share, or someone that runs a small business from home....

Admittedly, the rent of renting out a large place probably won't be as high as renting them separately - but it's still an option.

[srv]

Check with the council.... but to make it into a kitchenette probably means removing the stove/oven, I would think. If that is the case, check to see if you can then have one of those small bench-top electric elements (like you find in some motels).

I would also ask your insurance company about this...

Hasn't the councils cracked down on this? If they consider it a "food preparation area" I think you need to comply.

And I'm sure if the house burns down the insurance company will try to use that as an out.

[newbieinvestor]

Um... sounds complicated. Then what's a food preparation area? I got told (by the wonderful agent....) that a food preparation area is define by the stove and I can easily get away with it by getting rid of the stove. This is the part that confuses me.

Sorry guys, I might be asking stupid questions...

[shanenz]

my understanding is a food prep area is the bench and sink , ring the council and ask down here in chch they are always happy to answer questions

[Glenn]

I bet the Real estate agents manager would not be making glib promises like that.
Ask the agent to get his boss to ring you and make the same claim. This will scare the living day light out of him. If an agent makes claims like this then they can be held liable.
However the REI disaplinary kangaroo court might have a different view.