Whether it’s your own backyard or land you’ve invested in for the purpose of subdividing, it can all seem pretty simple – you subdivide, you sell, you make some easy cash. But like everything in life, if it seems too good to be true, it probably is.
Read more about property investment
Want to be kept up to date with the latest news?Sign up to our newsletters.
The reality of subdividing
Whether you can subdivide at all and how much work you will need to do varies hugely depending on your location. You will need to meet your local council zoning rules and could need to satisfy any number of other bodies – regional council, NZTA, local Iwi, and more.
Make sure you take into account what the land itself is like – how steep is the section? Will any building work involve digging into rock or soil? Is this a front or back section? If it’s a back section, how will access work? And where are the existing stormwater drains, water pipes, power lines, and other infrastructure?
The cost of subdividing could be up to $200,000 and the process itself take 9-12 months.
While this shouldn’t scare you off subdividing, it’s important to go into the process with your eyes open – especially if you are buying a property under the assumption you can subdivide. As always, get professional advice before making any kind of financial commitment.