MINOR DWELLINGS COULD

Minor Dwellings could well be the goldmine you are looking for

As a builder and property investor I am always looking for the most cost effective building methods. And as Chch developed new rules around minor dwellings I looked even harder for cost effective building for small homes. Usually the smaller the house the more expensive it becomes when building. So after many hours of searching and investigation I have come up with the most cost efficient home while still offering an energy efficient home that meets the requirements of the new healthy homes standards.

While rugby may be our national sport, our national pastime might as well be talking about property.

I have been building houses for over 30 years. I have gone through the ups and downs of the property cycles and experienced almost every factor with property investing. As I have got older and maybe wiser we have found a niche in the market that we feel we have become the experts in, especially within Chch. We are the minor dwelling specialists here in Chch surrounded by a great team of professionals and expertise. With the recent changes to the district plan there is definitely some excellent opportunities using the backyard of your existing rental property.

Around 3 years ago the rules were changed in relation to Minor Dwellings. Until this time you could only build a family flat in the backyard, specifically for the purpose of family. The new changes took away the restriction of only for the use of family. They changed the title of family flat to minor dwelling. And now, almost any property over 450m2 within suburban Chch can add a minor dwelling. there are other development rules that have to be contended with also. Maximum size 80m2. Outdoor living areas and car parking are just a few of these rules to contend with. In addition to the minor dwelling rule changes there are also new changes which could well allow the subdivision once you have built the minor dwelling. This works out well for those looking to increase their equity. We can help you undertake anything around these minor dwelling rules and all of the complexities that are involved.

To enable us to make the most of these new rules we have developed a house that is not only one of the best priced houses in the market, it is energy efficient and far exceeds the healthy homes regulations. With designs from a studio unit to a 5 bedroom house we have something to suit all lifestyles. However our favoured solution and the major component of what we do is the 80sqm 2-3 bedroom house. While compact in design it is exactly the right fit for the minor dwelling rules of the Chch market.

Our homes are built using Stucturally Insulated Panels (SIP’s). These panels are often referred to as sandwich panels. To ensure we keep the costs down to a minimum we have the bare basic model which is prefinished and ready for use in less than 2 months from foundation to curtains hung. Being prefinished we cut out costs like painting, plastering, exterior cladding and insulation. These all come with the panels. We can add any additions to the houses, but of course any add ons also increase the costs. Keeping it simple means we can keep the costs right down and still offer the benefits of any newly built house. With our simplistic designs you are able to save an amazing amount of money over the more traditional timber framed house.

While the recent developments over the last 12 months with the pandemic have certainly added some complexities to our lives we have not really seen any major downturn in the market. With property values still rising investors are still pursuing the opportunities out there. And this is certainly the case with our clients. While there was a small hiatus initially things are back to normal and we are still busy.

The major impacts that we were initially concerned about have also not seemed to have much affect on us, material shortages, new tax laws for investors and the healthy homes regulations. The talk around the materials shortages are not affecting us just yet. We don’t use timber at all, with steel angle piles, steel bearers, and steel on the panels we are not affected the same way the more traditional timber builders are seeing. The new healthy homes regulations have only slightly affected us with having to consider the heating supply. Our homes while , far exceeding the regulations, we still have to consider who is going to be the end user.

The biggest impact of our business may well be the new changes with the new tax investment rules. We have not seen any drop off just yet but with the laws still a little ambiguous regarding new homes we are still gauging what is going to happen once they all kick in. But with the shortage of new housing and maintaining the brightline rule for new homes we shouldn’t be too affected by this. We have had clients reconsider how they are approaching things, but still not stopping building. So it is business as usual but with some caution in the thinking.

At Real Property Homes we would love to assist you with your property investment. We have the knowledge and expertise in minor dwellings to ensure you get the best available solution for your property. Everyday we hear about the housing crisis on the radio, we have the solution to help solve this issue even if only in a small way for now. Our SIP homes offer unbeatable value for money, build speed, durability and meeting the healthy homes regulation. Our homes are all fabricated here in Chch with no shortage in supply so we are ready and waiting to assist you. With some of the new tax laws offering significant advantages for new builds over existing homes now is an excellent time to look at your backyard and see what you can achieve. For around $160k you could be bringing in an extra $400 per week. We would love to have a chat and see what we could do for you. I love talking property especially over a coffee or beer. So if you want to have a chat give us a call.