Question from Jimmy updated on 6th July 2012:
Can you please give me an estimated cost to subdivide a 1700m2 property zoned 6A in central Auckland? What are the items that contribute to this figure, how long does it take and what specialists/consultants are needed?
Our expert Hamish Firth responded:
Every site is different therefore the costs associated with the process (to create new titles) will be different in every case. Without an assessment of the specific property it is impossible to give an estimate as to costs. There are generally two parts to creating new titles, being the paperwork (including consents, certification, legal and survey matters) and the physical works (including drainage, driveways, power and telephone). In terms of the process, an application needs to be made to the local council. This requires an assessment of the effects, a subdivision plan and any necessary reports as required for matters like soil stability, flooding and overland flow paths. This will take four to six weeks to prepare. All going well then the council will process this application in four to eight weeks depending on the requirement for additional information. Once the consent is approved it will generally be subject to conditions which usually relate to physical works and easements that will appear on the new titles. Often the works require further 'engineering' approval from council for matters such as connecting to the public drainage system. If the subdivision is fairly straightforward these works could be completed in three to five months. These have to be signed off by the council, the site has to be surveyed and confirmed in plan by the council and then any development contributions need to be paid. Once this is all completed then the lawyers can then lodge for the new titles. This may take a further two months including any council certification. For a site specific analysis on costs and timeframes we would recommend you contact a professional such as ourselves. The process is detailed, requires a number of inputs and can become derailed in terms of time frames if the process is not managed properly.
Hamish Firth of Mt Hobson Group manages the Resource Consent application process and provides initial pre purchase advice to investors and developers. www.mhg.co.nz