Subdividing your property is a great option for you if you have unused land, live in medium density areas, and are looking to make a bit of extra income with a bit of investment upfront.
First and foremost, it's crucial to ensure that your property is suitable for subdivision. Consulting with planners can provide clarity on the feasibility of your plans. Following this, engaging with the council for a preliminary check is essential to understand the regulatory requirements and constraints.
Next, assembling a team of professionals is imperative. This typically includes engineers, architects, lawyers, accountants, and builders. Engineers will oversee the technical aspects of the subdivision, while architects will design the layout of the townhouses. Lawyers will handle legal matters, ensuring compliance with regulations, and accountants will offer financial advice, considering tax implications.
Having robust contracts and work insurance in place is non-negotiable. Contracts protect you in case of unforeseen events like fire or theft, and work insurance is a prerequisite for obtaining financing from banks or non-bank lenders. It's essential to adhere to these requirements to safeguard your investment. Speaking of banks, most lenders require a registered valuation report before granting financing for the construction of townhouses. This valuation provides insight into the property's value upon completion, allowing lenders to assess the risk accurately.
While banks mandate valuations for all construction projects, non-bank lenders may have different requirements based on their risk appetite and policies. Regardless, obtaining a valuation is a crucial step in securing financing for your subdivision project.
Embarking on a subdivision journey requires careful planning, thorough research, and collaboration with experienced professionals. By following these steps and seeking expert guidance, you can navigate the subdivision process successfully and unlock the full potential of your property.
Key words: Subdivision process, townhouse development, property subdivision, subdivision feasibility, professional advice, NZ Mortgages, construction loans.
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