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Subdividing Land For Investment

Auckland Council’s recent Housing Action Plan identified a shortfall of residential dwellings of around 20-30,000 and a need for 13,000 new homes each year for the next 30 years, highlighting a significant opportunity for land owners to subdivide property in Auckland for sale, or subdivide and build.

The process of subdividing can be extremely complex, especially for someone new to it. To help property investors navigate this process, Ashcroft Homes now offer Subdivision Specialists who can guide you through the entire process.

Ashcroft have also developed a range of house plans that are specifically suited to smaller subdivided sites and specifically designed for the Unitary Plan. These plans are designed to maximise the living spaces, minimize the footprint and make the very best use of the land available. .



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Steps to Subdivide

1. Initial Feasibility Evaluation

Initially you will need to discover whether you can subdivide and build in accordance with the District Plan. In Auckland, changes to the Unitary Plan which have reduced the land size required to subdivide and build will allow more land owners to benefit from subdividing land.
The District Plan also details the extent and conditions that would apply to your subdivide and build project, plus any specific restrictions around subdividing land in your area.

2. Topographic survey of the property

This locates all existing features of the property including any existing houses, drainage lines and trees, and the contours of the land.

3. Prepare a scheme plan for the subdivision

This often requires house plans to be included and we can provide these as part of our Intent to Progress agreement.

4. Prepare resource consent application

This will normally be prepared by a surveyor or planner and usually includes engineering design for any drainage and access ways required.

5. Obtain resource consent from council

There will normally be some queries during this process but once resource consent is granted then you have certainty of being able to carry out the subdivision.

6. Complete all physical works including installing drainage and services and right of way driveway if required
7. Apply for 224c certificate from council confirming all works complete
8. Apply for new titles

What costs are involved in subdividing your property?

The costs of subdividing include the resource consent application, installation of drainage,  services and driveways, legal and survey fees, and often most significantly, council development contributions.

Typically in Auckland a subdivision of land from one lot into two will range in cost between $90-120k, however this could increase depending on factors such as the availability of drainage. Usually the cost will be less for each additional lot. You should also consider the tax implications of developing the land which your accountant and lawyer will be able to assist you with.

The Subdivision Specialists at Ashcroft Homes are here to help you through your land subdivision process. Click here to contact us now.

 

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