IS YOUR LAND 800 SQM OR MORE ?
If it is, and in some zoning and areas even smaller, you could cash in on the extra land and give yourself a nice nest egg.
The very first thing to sort out is: Is the spare land when developed into a subdivided section off my existing property going to sell at more than the cost of doing the subdivision in the first place.
This article is assuming it is.
You don’t need to know what to do to achieve this as there are experts out there who do this all the time, buying homes, cutting off the spare section and selling it to either a building company or a private home builder.
But first you should get in touch and ask a local surveyor if you could visit him, or he come to you to determine the likely hood of you being able to do this with a land space you have.
Many things influence whether your spare land is suitable for subdivision and that of course includes the size, the zone the property is in, is it residential A or other, or is it Commercial zoning etc. Not all zonings have the same rules for subdivision as another.
How many houses are already on the land?
Does the title to your land have any clauses that prohibit you from putting on another dwelling?
Do the present utilities need upgrading, drainage sewer, etc. or are new ones needed?
Is there enough space to not only build the new property but enough room that enables a car the drive in and out without a hassle?
But don’t let any of the above stop you from making enquiries from a surveyor, this is all in a days work for them. Make sure you ask him the costs involved, in both his costs and council costs. Do these have to be paid immediately etc.
Once you have spoken to a surveyor, and he has confirmed your section can be subdivided, you need to decide what to do Go ahead, or just be happy you have a big section for growing children or grandchildren.
If you go ahead, below are simply my thoughts as an ex developer and real estate agent for 25 years.
Do you subdivide and build yourself a brand-new unit on the back and sell the front original house?
Do you use a surveyor to do this for you so you can sell the section yourself.?
Do you build a new property on the back (or font) of the section and sell it when completed, with you staying in your present home?
Do you sell the lot to a Developer and let him have the hassle of subdivision?
Do you sell him the whole property and let a developer build as many units as he can on it keeping one for yourself as part payment for land and existing house?
Do you sell to a Developer the whole property and buy something else in another area.
You could, also just sell the whole property to a family wanting a big section, but I feel your most profitable one would be subdivision.
We are TopNotch Agents NZ Ltd and specialists in identifying the very best Agent for you when you are ready to do something. Our service is totally free and comprises of making sure you use the very best agent possible to take over the reigns when you are ready to sell either the subdivided section, the whole property or either the new or existing home.
TopNotch Agents NZ Ltd are not Real Estate Agents, but a free Referral Service and totally independent of any Agent or Real Estate Agency. Just phone us on 0800 355 655
The choices are there for you.
Below are simply my thoughts as an ex developer and real estate agent for 25 years and choosing the right option for yourself will depend on your future living needs and your financial position which must be beneficial to you on completion.
Subdivision is easy if you give it to a Surveyor to handle.
Once he has given you a price to complete don’t forget that there are Council fees and costs to add as well. Ask the surveyor what these would be. The surveyor will order the council to come and do drainage and sewer work that will be changed and there will be costs just asking them to approve the subdivision plan but here again the Surveyor will help with that, drawing up the plans and documents needed for council.
One of my first subdivisions was in Ngongataha, Rotorua.
I asked the Surveyor how much it would cost. When I got the bill, it was almost twice what he quoted.
That was because I did not realise he had told me his cost, but not included any costs Council may charge so make sure to ask if the Surveyor has any idea of what Council charges will be payable.
The closer to the front or back your present house is, the better, as this will leave more space at the back or front to play with. Don’t worry if there is a garage or shed behind the house or alongside, these are unimportant issues. The garage can be moved, sold or demolished whichever you think is the right thing for it, again ask the surveyor.
One of the big questions is:
Will I be happy to have a unit built at the back for me and have new neighbours who have bought my existing house. How can I be sure they will be respectful and not have dozens of visitors blocking the driveway, or wild parties etc.
Truth is, you can’t be certain.
You may sell to a quiet couple who sell on to party/social people and you have no recourse.
Yes, there is a lot to consider, but it can be quite profitable too and if you let us find you the right Agent we will also find you a good registered Surveyor who will give you all the information you need to make an informed decision on what is best for you.
Questions write to me at firstname.lastname@example.org
In the meantime, keep safe.