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Whether you want Mum and Dad a bit closer to the grandkids, or are looking to unlock some cash or create a new income stream, developing your existing home property is a common journey for those who have some land. There are many options from adding a tiny house or a granny flat to undertaking a full subdivision. Each option has pros and cons to consider as you start your development journey.
Tiny house
Tiny houses range in size, depending on whether or not they are designed to be transported. A tiny house is relatively simple to acquire, easy to maintain and can be efficient to run, especially if you make use of off-the-grid technology. Tiny houses provide a flexible space that can be used as extra living space, work-from-home office space or a consultation room for a business.
There are several factors that will impact on the regulations that you may need to comply with when adding a tiny house to your property, such as:
- Will the tiny house be permanently on site?
- Will the tiny house be on skids or wheels, and will it actually be possible to move it once it is in position?
- Will it be connected to services, such as water, plumbing and electricity?
- Will you need resource consent?
Your answers to these questions will determine which regulations under the Building Act and your local council will apply, and what planning/building consents are required. The Ministry of Business, Innovation and Employment (MBIE) has published helpful guidance on tiny home regulations, which is a good starting point in your planning. Go to: https://www.building.govt.nz/assets/Uploads/getting-started/tiny-houses/tiny-houses-guidance-mbie.
While compliance for a tiny home might seem a burden, it’s crucial if you have or will have a mortgage over the property, and for insurance purposes.
Granny flat/minor dwelling
If you have a large enough section, you might consider putting a minor dwelling on your property. A minor dwelling (or granny flat) is a second house on a section, not larger than 60 or 65 sqm depending on the site. It can allow extended families to live together on one property, or become a source of rental income.
You will need council consent to construct a minor dwelling, and it pays to check with an urban/town planner and a surveyor to see whether your site is suitable. In the Auckland region, the Unitary Plan sets out the requirements that apply regarding urban planning rules. A real estate agent can also give you an idea about the possible rental income you might expect if you choose to rent the dwelling.
Subdivision
If your section size and local council allow it, a full subdivision has the advantage of giving you a saleable asset at the end of the project. However, it is a complex process, involving at least a surveyor, planner and lawyer, and potentially an engineer and ecologist, in the first instance. Council may impose certain conditions, along with urban planning requirements. Common issues to consider are sufficient access to utilities, boundary rules and flooding risk.
A chat with your lawyer, planner and real estate agent, in the first instance, can help you begin to assess which development option may be right for you, and how to begin.
