09 Sep Auckland property owners profiting from the Unitary Plan
Auckland property owners have been taking early advantage of the city’s new planning rules to create wealth from their land.
Many Auckland property owners have been taking early advantage of the city’s new planning rules to create wealth from their land.
Properties that may not have previously been subdividable under old rules, are now being developed with great profits being made. Under previous district plans, there were density rules with minimum site sizes but in many areas, minimum site sizes no longer apply (providing development controls are met). This means a huge part of Auckland has opened up for viable development.
DRAMATIC INCREASE IN THE NUMBER OF TITLES AIDING PROFIT
Ashcroft Homes has been specialising in infill development for 12 years, and has seen a dramatic change in the types of developments happening in the city. Three years ago, prior to the Unitary Plan, a typical development would be a family owned 800m2 site with an existing house on the front, where an additional dwelling would be built on the back to create two new titles. That same property now would likely have the existing house removed and four duplex houses or six or seven terraced units built, all with individual titles.
Much of the value in property in the city is in the land or title, so by increasing the number of titles out of a development, significant profits can be achieved.
NOVICE DEVELOPERS CASHING IN
Developing property has traditionally required specialist knowledge and skills and has not been for the faint hearted. But now a comprehensive, one-stop development offering from Ashcroft makes it now easily achievable for all. Individual homeowners, investors, novice and experienced developers alike, are all seeing the value in having one company look after all aspects of their development.
As a development partner, Ashcroft Homes has full property development expertise in-house, with planners, engineers, architects, and project managers available to guide its clients through the entire process. From initial feasibility, to obtaining resource and building consents, building the new dwellings and implementing all subdivision works, the company will look after everything right through to securing new titles and code compliance certificates for the completed development.
MANAGING RISK TO MAXIMISE RETURNS
Ashcroft Homes end-to-end partnership is all done with a philosophy of minimising risk and maximising profit for clients. A key aspect to this, is building to a standard range of house plans. These plans have all gone through a lengthy design process and with input not just from architects and engineers but also builders and project managers. The objective with all designs is to make the most efficient use of the land and to be the most economical to construct, to deliver the very best returns for the investor.
Risk is minimised in a number of ways, starting with the time taken to turn around scheme plans for a proposed development – typically a week or two, compared to months for a bespoke design. Costs are largely known upfront, meaning feasibility can be assessed at an early stage – before investing large amounts of money on design. With standard plans, the designs have already gained council approval, making processing of resource consents and building consents faster and with less issues.
Property is developed for a variety of reasons, including building to sell, building to rent, or to add additional dwellings for family members. Whatever the end goal, the process is essentially the same and can now be achieved relatively simply, with less risk and greater margins for all.
COULD YOU PROFIT FROM THE UNITARY PLAN?
Are you an Auckland property owner? Ashcroft Homes offer a free feasibility study that will give you a no obligation assessment of what may be possible to build on your land. To find out if you too can profit from the Unitary Plan, visit ashcrofthomes.co.nz.