Application for new minor units
There is shocking news that application for building a new minor unit at a private property across Auckland will not be accepted by Auckland Council from September 1, 2016. So if you are considering to build a granny flat at your own property in Auckland you will have to be quick to get your plan ready to lodge with AC.
What you have to do for the application is to prepare Resource Consent (RC) for your minor unit plan and lodge it with AC by September 1. However, you dont have to be worried about quick-build of your minor unit as it is just to be built within 5 years since the RC application is accepted so you have a plenty of time for building.
If you have your own property and have enough space at backyard I recommend that you think about building a minor unit because this is an excellent investment as explained below.
Do you want to know how much do you need to build a granny flat?
The cost depends on the site condition and your requirements for design details but we Japan Homes roughly offer $1,900-2,000 + GST per square meter of its floor area. Normally the max. floor area of a minor unit is 60m2 so you may need $ 114,000 to $120,000 + GST for the build (The building and foundation only). You may also have to pay another around $30,000 to $40,000 for council fees such as RC, Building Consent, storm water connection and Development Contribution.
In Total you may need around $160,000 to $185,000 including GST.
You may think this is a bit expensive cost however it will be not.
As you build a minor unit your property value will probably go up as much as the total cost so you actually dont waste any many. You just top up the building cost on your property value.
If you think about building a minor unit for renting that will be a great idea as you may get roughly $20,000 a year although this also largely depends on which area is your property is located. In my private experience I recently built a minor unit on my land in Pakuranga and get a weekly rent of $450. The annual income will be $23,400. Although I may have to pay for maintenance fees, etc. I will get at least $20,000 a year. Although you need a homeloan you will pay it back within 10-15 years only by rent income and after that get $20,000 stable income with the property value increased.
You spend the building cost which also increase the property value and will get stable annual income of around $20,000. Will it be not a great investment option?
If you discuss details with us please contact us!!
Below is the example of our granny flat plans.
Thanks for reading!!!
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