In New Zealand, where housing affordability is a growing concern, there’s a game-changing solution: subdividing and building.
It’s an amazing outcome we see all the time – if you own property, you’re probably in a position to create value for and with your family. You’ll share the costs and build wealth for everyone – help loved ones get onto the property ladder, make financing easier and keep the family close.
Here’s why it could work for your family.
By leveraging household incomes and sharing costs, subdividing and building can make homeownership more attainable for everyone in the family. It’s a great way to support your loved ones without shouldering the entire financial burden. If you own the land, you’ll only need to cover the costs of subdivision and building.
When multiple parties contribute to a subdividing and building project, it makes an attractive package to the banks. Costs are spread over more earners, which lowers the risk of a loan and makes it easier to approve. That’s particularly useful if, for instance, you’re no longer earning but have great equity, and your kids have excellent salaries but no savings. Individually, you may struggle to get a loan. Together? That’s another story entirely.
Subdividing and building don’t mean you end up with ticky-tacky carbon-copy townhouses. You’re limited only by your space and budget!
One of our clients recently demolished their old family house to make way for three new homes: one for themselves and one for each of their sons. Presented with four incomes and a free-hold property, banks were thrilled to support this project. But the best part? These homes are anything but cookie-cutter. Each family worked with our designers to create their ideal home – the external styles were complementary, but inside, you’ll find a distinct design for each unique lifestyle.
You’re going in together, but you won’t be financially tied long-term. Each family member owns their home, complete with a separate title. They can sell it when it’s time to move on, rent it out while overseas, or leverage its equity to buy something new.
One of our clients knew they could never afford to subdivide and build on their own. But by joining forces with their family, they created beautiful, double-glazed homes that are warm and cosy while keeping their grandkids close – wins all around!
Take inspiration from our other clients — a couple who wanted to help their 20-year-old daughters. They decided to subdivide and build a house and a duplex. The ingenious plan? The girls can rent the duplex units and eventually buy them. It’s an arrangement that keeps the kids close, but everyone enjoys their independence — the best of both worlds.
And with subdivision, there’s no need to uproot your life. Instead, stay put and improve the community you’ve grown to love.
If you’re keen to start a family subdividing and building project, here’s how to navigate the process.
Be aware that this can be a long process – up to two and a half years. But then, it’s done. And when you think back to three years ago, how quickly did that time fly? Before you know it, everything will be completed, and the rewards will be worth the wait. So, buckle up and stay patient.
Even if you’ve been told it’s impossible, we’ll find a way to do it. Take our recent project as an example: a flooded and condemned house on an odd triangular-shaped plot in Grey Lynn. We came up with a plan to fit three two-storey homes.
Even if the consent process seems like it’s in a ‘too hard basket’ for your piece of land, don’t give up. As long as you meet the criteria, we’ll help you convince the council that your new build will benefit the area, the environment and the city.
With 1001 decisions to make, the subdividing and building journey can seem overwhelming. The key is to team up with the right partners who know the ins and outs of the process. The building part is a piece of cake. But the planning? That’s where some real magic needs to happen. Don’t be tempted to cut corners or rely on your friend’s cousin’s neighbour who dabbles in construction. Invest in professional project management to get it done right – it’ll make the journey easier and the rewards far greater.
At Sentinel Homes, we’ll guide you through a detailed, measured process, one step at a time, drawing on 15 years of combined experience. And because the success of a subdivision project often heavily depends on individual funding and accounting structures, when it comes to financing your project, our team works with trusted experts to ensure you get all the advice you need.
Convinced? Before you talk to your family – find out what's possible with Sentinel Homes here.
Let’s get together for a free, no-pressure meeting with one of our team, at your place or ours.
We can't wait to hear your ideas!
