B1 - Subdividing Your Property

Subdivision is the legal division of land and/or buildings for separate ownership. Subdivisions are governed by the Resource Management Act 1991 (the RMA) and require a local council consent.

You can subdivide your property in a number of ways. You can:

• continue to live in your current house, subdivide your section and sell off the subdivided land as an empty section for development (C1 Selling a Subdivided Section and Remaining in Your Current Home).
• subdivide your section, sell your current house and build a new one on the subdivided section to live in yourself (C2 Selling Your Current House and Building and Living on the Subdivided Section).
• continue to live in your current house, subdivide your section and build a new dwelling on the subdivided land and then sell that new house (C3 Remaining in Your Current Home and Building a House on the Subdivided Section to Sell).

Pros

• If you are happy living in the area where you are now, subdividing could provide a lump sum of money and/or new options to improve your housing situation.
• Subdividing would reduce the amount of section you need to maintain.

Cons

• Subdivision is a lengthy and costly process. You will need the financial resources to fund the process and upfront costs.
• You will need to obtain subdivision and building consents.
• You may have to pay income tax on the profits of the sale of the subdivided land.

What do I need in order to take this option?

• Your section will need to meet local council rules for subdividing properties.
• You need to be able to cover the costs of the consent and subdivision process.
• You will also need to consult professionals - such as a solicitor and surveyor - early in the process, in addition to talking to council.

Could this option limit my future choices?

No, unless the subdivision results in some shared access or other easement on your title, then, once complete, it will probably have little or no impact on your future choices. It could have a positive effect in terms of the money you might get from any future sale.

For more information

Talk to your local council, your solicitor and other relevant professionals (such as surveyors, architects and builders).