If you’re looking to bring your parents closer, generate additional income, or maximize your property‘s value, developing your existing home property is a smart move. With options ranging from adding a tiny house or granny flat to pursuing a full subdivision, each path comes with its own set of advantages and challenges. Here’s a breakdown of what you need to know as you embark on your development journey.

Tiny House: Flexibility and Efficiency

Tiny houses are increasingly popular for their simplicity and efficiency. They vary in size and can be designed to be transportable, making them a versatile addition to your property. Whether used as extra living space, a home office, or a consultation room, tiny houses offer flexibility and cost-effectiveness, especially when utilizing off-the-grid technology.

When considering a tiny house, you’ll need to address several key factors:

– Permanent or Temporary Placement: Will the tiny house be a permanent fixture on your property?

– Mobility: Will the tiny house be on wheels or skids? Can it be easily moved once placed?

– Utility Connections: Will the tiny house be connected to essential services like water, plumbing, and electricity?

– Compliance and Consents: Do you need resource consent or building permits?

Your answers to these questions will determine the regulations you must follow under the Building Act and local council rules. For guidance, the Ministry of Business, Innovation, and Employment (MBIE) has published a helpful guide on tiny house regulations, which is a great starting point.

Compliance is crucial, especially if you have a mortgage or need insurance coverage for your property.

Granny Flat/Minor Dwelling: A Practical Solution for Extended Families

If you have a spacious section, adding a minor dwelling or granny flat is an excellent option. A minor dwelling, typically not exceeding 60 to 65 square meters, allows extended families to live together while maintaining privacy. Alternatively, it can be a lucrative rental property.

Before proceeding, you’ll need to obtain consent from your local council. Consulting with an urban planner and surveyor will help determine if your site is suitable. In the Auckland Region, for example, the Unitary Plan outlines the necessary urban planning rules. Additionally, a local real estate agent can provide insights into potential rental income if you decide to rent out your granny flat.

Subdivision: Unlocking Significant Value

For those with larger properties, a full subdivision can unlock substantial value by creating a saleable asset. However, this option is more complex and requires collaboration with professionals, including a surveyor, planner, lawyer, and potentially an engineer or ecologist.

The local council will impose conditions and urban planning requirements as part of the subdivision consent. Key considerations include:

– Utility Access: Ensuring sufficient access to utilities like water, electricity, and sewage.

– Boundary Rules: Adhering to regulations regarding property boundaries.

– Flooding Risk: Assessing and mitigating any flood risks.

Starting with a conversation with your lawyer, planner, and local real estate agent can help you determine the best development option for your property and guide you through the initial steps.

Making the Right Choice

Each development option offers unique benefits and challenges. By carefully considering your goals and consulting with the right professionals, you can unlock the full potential of your property and make informed decisions that align with your long-term objectives. Whether you choose a tiny house, granny flat, or full subdivision, proper planning and compliance are key to a successful project.