You have to spend money to make money

This is a well-known fact. Even prospecting for gold costs money; usually it’s worth it but not always. So, how much do you need to spend to get your return?

A guide to costs

Here’s a guideline of expected costs to get a resource consent for a sub-division. For a minor dwelling the cost is approximately half. All prices include GST.
Topographic survey (exact layout of your land and services) $2200
Infrastructure Engineering Plan (how to connect to services) $4000
Infrastructure report, (must be adhered to) $1800
Design concept existing house and elevations $1000
Design concept and scheme plan for overall site $4000 (not req’d for section-only subdivision)
Council application fees $5000
Surveyor fee $5800
Project management fee (co-ordinate and guide process through to consent) $1800
That’s $21,600-$25,600 depending if you need a new house design or not. The value your property will be worth at least $100,000 more than what you spent when you have consent.

Tricky sites

If you have a difficult site or you want more than one house, expect extra costs. A geotech report (steep land) or a flood report cost $3500 each. Unfortunately, that’s the cost to make a purse from a sow’s ear. It’s still profitable. Sometimes you need to sift through tonnes of dirt to get an ounce of gold.

No disturbance needed

There’s no need to disturb you or your tenant to assess the potential of your excess land. Almost all the basic information is available on street view or the Auckland GIS viewer, and a consultant can estimate the potential without even leaving their office.  However, it takes an expert to interpret the information. The initial advice can be obtained for free, then if you want to go ahead a surveyor and engineer would visit outside of the property, just once.

With Auckland’s infrastructure under pressure it’s better to find out what your potential is now. Fortunately, obtaining a resource consent is an investment with a guaranteed return. The day you get an approval your property will be worth more.
 
Laura Warmington
MA Real Estate & Construction Management