advice on Minor dwellings in South auckland

[timorum]

Im looking at increasing my returns on rental property by adding a minor dwelling, looking like 150k to pay someone else do it all and a return of 250-325 P/W so conservative 8.5+% return but perhaps 12%+. I have some good contacts in building industry that would save money on construction costs but i would have to pay for plans and have no experience on council consents.

Just wondered where i find basic rules for land requirements, max/min sizes of second dwelling, distance from other building etc . My property's are in papakura, then I can establish feasibility before spending any money

Also wondered if anybody else had done similar projects and how they worked out

[Orkibi]

just wondered where i find basic rules for land requirements

Mate, if you want an accurate info then contact the local council for info.

no one here can tel you exactly about the requirement - you need to talk to a town planner and building officer.

usually a section need to be 600m2 (west AKL)-800m2(south AKL) or more and preferably street frontage section that you can have access to services etc. (not a back section - it is more difficult and costly)

[shanecarruthers]

Yip have a chat to the council and get some clarification of their expectations, then you can get quotes for work needed and workout if its worth pursuing.

[Davo36]

Yeah pop along to the Papakura office of Auckland Council. They're so friendly and helpful.

(For clarity, I am being very sarcastic.)

In my opinion, this minor dwelling stuff is not a good idea. It will cost more than you think, take longer etc. I hate to sound negative, but it's basically too much work for not enough money.

Why not just buy another rental? They're quite cheap in the Papakura area.

[Pegasus]

I think its a great way to increase yeild. Have you looked at relocating a second hand dwelling and doing it up as another option - look on trademe under houses for removal or relocation in the real estate part

[Harvey]

@timorun how are you getting on. I am looking for same advice.

Does anybody have recommendations for companies that building minor dwellings as a speciality?

[tina]

Last time I did a minor household was just before the cost changes of connecting into the public stormwater etc. The cost then skyrocketed to around $25k just for a permit to connect to public services, without having the actual work done. This was Manukau which is now all Auckland. I have a good contact who can organize the whole project saving you the hassle . He knows the various rules and regulations and will do a free consult.

[Harvey]

@tina That would be choice. Who is your contact? builder, project manager, building company? Can you post on thread or PM me.

[tina]

Hello Harvey, call Alvin on 092392232 he works throughout Auckland, based in Pukekohe. I have only just met him through BNI and had a meeting in his office. I would highly recommend him after seeing what he provides clients. I have been in the building and finance industries a long time

[belgarionsmate]

Im looking at increasing my returns on rental property by adding a minor dwelling, looking like 150k to pay someone else do it

150k? ... Maybe a few years ago. ... Now with building regs far tighter and council "development contributions" far higher I suspect you'll be looking at at least 200k for a very basic "prefab" type of MHU and 250k plus if its going to have any sort of quality to it.

[tina]

I'm just completing building 2 x3 brm townhouses 110m2 each and its cost $340k for the 2 including council consents but that is in Franklin. The 3brm minor household I had built some years ago was $130k so around the $180k - $200k would be more realistic including council permit fees etc I would think. My builder contact would be able to give more accurate feedback since he's up with the play re current council and building costs

[Shane D]

I'm just completing building 2 x3 brm townhouses 110m2 each and its cost $340k for the 2 including council consents but that is in Franklin. The 3brm minor household I had built some years ago was $130k so around the $180k - $200k would be more realistic including council permit fees etc I would think. My builder contact would be able to give more accurate feedback since he's up with the play re current council and building costs

Tina,

2 x 3bdrm built for $340,000 including council fees seems great. Sounds like a nice like investment package.

Are the houses single level? Or are they a multi-level design to minimize the footprint?

Shane

[tina]

It's a Duplex, joined in the middle, separate internal access garages, open plan. We paid the contractors direct and had a project manager, that way we saved on all the markups that full contract builders charge. We're just starting another big house with him on behalf of someone else. I organise the mortgages for these kind of projects and work with a number of construction clients as well as our own projects

[Shane D]

It's a Duplex, joined in the middle, separate internal access garages, open plan. We paid the contractors direct and had a project manager, that way we saved on all the markups that full contract builders charge. We're just starting another big house with him on behalf of someone else. I organise the mortgages for these kind of projects and work with a number of construction clients as well as our own projects

Thanks for the reply.

Is the duplex single story (level)? or 2 or 3 story (levels)

Shane

[tina]

single, we were going to do double but the extra cost v the rental income wasn't worth it