The Auckland Unitary Plan unlocks valuable capital for property owners

Drastic changes to Auckland Council’s planning rules have opened a wealth of opportunities for homeowners
and investors to become their own developers.

If you own a house, or are invested in one, you need to know about Auckland’s Unitary Plan (AUP).

It’s going to change the residential density of the city and it could be a substantial
capital gain for property owners.

The purpose of the AUP is to create 400,000 new sections and improve the quality and density
of housing along arterial routes, towns, shopping centers, and transport hubs.

Under the plan, new Urban, Suburban, and Terrace Housing/Apartment zones have been created allowing existing properties to be subdivided and developed.

There are three options to profit from your development.

Each option carries different risk/reward profiles and requires different levels of time and work from the property’s owner. It is important to understand your own appetite for risk and be clear about the amount of time and effort you are able and willing to commit to the development.

There are many amazing success stories in property development, but there are also examples of disasters where things have just not been undertaken properly.

RDC has the expertise to ensure the best outcomes for any of these options, but people who are comfortable with options 2 and 3 – that is, options that have you take on more of the development risk, stand to make greater returns.

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1. Sell a resource and subdivision-consented development

Fast turnaround, minimum work required. You (the owner) obtain Resource and Subdivision Consent (and possibly Building Consent). Sell to a developer who carries the development risk and stands to make a greater profit.

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2. Sell house and land packages off the plans

Even more of your time required. You do all the steps shown in Options 1 and 2 and create house designs which you sell to prospective buyers as “off the plans” contracts, to be completed as new homes. You the developer contract build for the purchasers.

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3. Build and sell finished houses

Greatest time and effort required. You the developer complete the development from beginning to end. This increases your risk while maximising your opportunity for gain. Presales will de-risk the project but most upside is gained when the completed development is taken to the market.