Don’t Rush When Subdividing Property in New Zealand
If you are lucky enough to own a large property in New Zealand, you might be thinking about ways to benefit from it. As the options of grand plans are quite less, you might be considering land subdivision. However, before you begin the land subdivision process, Master Builders NZ would like to give you some awareness.
What does land subdivision mean?
Subdividing means dividing up land into two or more sections. Most people go for land subdivision so they can sell off some of the portions and keep some.
What are the main types of land subdivision in New Zealand?
The land subdivision process is categorized under three main types of land ownership:
Fee Simple
This is the most common type of subdivision. It divides a property into two or more sections.
Unit Title
This form of the subdivision is mostly used when one building is over another one, for example in case of an apartment complex. However, unit titles can also be used for individual houses, joined houses, or a commercial block.
Cross-lease
In this type, a lease is created over each unit, usually called a ‘flat’. Before starting any construction NZ work, you need approval from your cross-lease neighbor because each flat owner shares ownership of property.
What do you need to consider when subdividing?
The land subdivision process is the quickest way to earn profit. However, don’t forget that is quite expensive and lengthy, so make sure you have a clear understanding of what you are getting into.
Do you have an idea of the overall costs involved with subdividing your property?
The cost land subdivision process can vary for each individual. It mostly depends on factors such as the infrastructure issues.
You can also generally expect the total cost to include:
- Costs of consent processing
- Development contribution fees
- Infrastructure connection costs such as water, power, communication, etc.
- Driveways and access costs
- Professional fees such as for surveyors, planners, lawyers, engineers, etc.
- Land Information New Zealand fees
Have you engaged a professional?
A licensed professional will guide you about the exact land subdivision cost, amount of time required to complete the process, and a lot more.
Have you worked out how you will use your subdivided property?
There are various ways to subdivide a property. Before you get into it, make sure you know why you are making this decision. Ensure that you are clear on it, whether you want to sell the property, build a new house on the subdivided land to sell, or build an additional house for your own extended family. You should have a clear aim because you might need additional land use consent and building consents before you start the construction NZ work.
