Subdivision - The Dos and Don’ts
Subdivision can be seen as a good way to make money from your land, and in many cases it is profitable, but to ensure you unlock your property’s potential, we recommend the following:
DO
Work with professionals, and engage the services of Bay Planning early. We will work with your chosen surveyor, or recommend one of our friendly surveying partners to be involved in the process.
Consider your budget from the beginning. There are a number of costs involved in subdivision, such as:
Technical specialist fees: your surveyor, planner, geotechnical engineer, civil engineer and possibly a designer, if you’re also building a house, will all charge fees. We recommend speaking with all of these professionals early in the process to get an idea of your budget.
Council fees will be charged on the processing of the subdivision consent application.
Development Contributions: these are a fee paid to Council once your subdivision has been approved and they contribute to the extra infrastructure your new Lot/s will require from the Council. These vary from Council to Council and also from rural to urban. It pays to check upfront what the cost will be, as it is often overlooked and comes as a surprise to many applicants. Your local Council, or here at Bay Planning, can assist in checking these costs.
Installation of services: this includes the installation of pipes in the ground for water and sewer, stormwater tanks and pipes and new or upgraded driveways. These services often need to be installed prior to the Council releasing title, so your budget needs to cover these upfront.
Are you thinking of building a house as well? Fees associated with your designer or architect, along with the actual cost of building, should be factored in early.
Have a clear idea of why you are doing this subdivision. Have you got a big backyard and you think it’s a good idea to subdivide to make a bit of extra money? Are you planning on providing for your future, or your children’s future? Do you just want to do a boundary adjustment with a neighbour to get a bit more land for you? Do you have a big farm and want to subdivide off a lifestyle lot to help free up some cash? Are you a developer and want to remove the existing house and subdivide and develop into multiple lots? Bay Planning can provide advice on all of these scenarios, and can help you choose the best option.
Consider what your property will look like and how it will function after you’ve done the subdivision. Sometimes, it can be tempting to go with the easiest option, but that could result in a Lot that is too small, or development too close to you or your neighbours. Bay Planning can run you through the options, we have a lot of experience in all types of subdivision.
Plan early. There is never a better time to get started on your development than now. If you put the plans in place now, it will give you lots of time to sort out your finance and be ready to progress the project when the time is right.
DON’T
Don’t always think you can do what your neighbours have done. Many subdivisions are historic, and here at Bay Planning we have seen a shift in many of our local Councils and their attitude towards both urban and rural subdivision. While our Council counterparts across Hawke’s Bay, Gisborne, Taupo, Palmerston North and Tararua are often open to development and good design, they are also never keen to repeat the mistakes of the past. Our advice is always to contact us early if you think you would like to subdivide your property, or you’ve got your eye on a property that might be a good option, and we can give you the most up to date information.
Don’t look at profit being the only bottom line. Yes, if you do it right, you’ll likely make some pretty decent money on a subdivision, but sometimes that is at the expense of good quality design and environmental effects. When looking at multi-lot subdivision, we recommend taking a holistic approach, incorporating good design, stormwater details and landscaping from the beginning. Not only will this make your consenting journey more straightforward, you’re probably more likely to sell the Lots for a higher price.
Don’t think this will be quick. Sure, a simple infill subdivision (which is where you build a house/ develop a lot behind your existing house) can be reasonably straight forward, but it is still likley to take about 6-9 months from the initial concept to the release of title. If you’re interested in a multi-lot subdivision, or there are complexities to your property such as a hazard risk, the time from concept to new title can be considerable. Engage Bay Planning early to get an idea of timeframes.
Don’t get frustrated with Council. Yes, there is sometimes a lot of red tape to navigate, and yes, sometimes it can seem like it’s all a bit too hard. Our local Council’s have a lot to deal with, including changes in the Planning system handed down from Central Government, to increases on their infrastructure (pipes and roads) , to staffing pressures and in Hawke’s Bay and Tairawhiti - cyclone recovery. Let the Bay Planning team liaise with Council on your behalf. We have great relationships with our local councils and work hard to get the best outcome for our clients while enabling Council to function as efficiently as possible.
Don’t do it yourself! Subdivision consents have become increasingly complex in the last 5 years, with council’s aware of the pressure that development is putting on our cities and rural environments. Councils will unlikely accept a subdivision consent application unless it is prepared by a professional and in many cases, that includes both a surveyor and a planner. Want to ensure you get the best outcome for the least hassle? Come and see us at Bay Planning and we’ll steer you in the right direction and almost certainly ensure a better final outcome.
Who do we work with?
We work with most surveyng companies here in Hawke’s Bay and across the Central North Island. The following are links to some of our preferred surveyors. If you do not have a surveyor that you’d like to work with, we will recommend someone who we think is a good fit for you: