Landlords holding on to properties with big sections may be able to get their money’s worth out of them under proposed changes in the draft Auckland plan, says the New Zealand Property Investors Federation.
The plan is yet to be notified but includes some dramatic changes to areas such as Takapuna, Milford, Onehunga, Royal Oak and New Lynn, as the council tries to find ways to house the city’s growing population.
Under the plan, 44 per cent of the city will stay mostly unchanged but 56 per cent is earmarked for intensification.
Many property owners could find they can subdivide properties that were previously as small as the council allowed.
NZ Property Investors Federation president Andrew King said large sections were traditionally problematic for investors but the plan would enable them to develop them in many cases.
“It’s hard to make big sections work as a rental because tenants don’t usually want to pay a lot. But if you split it up it’s easier to provide more rental properties.”
King said the plan was a political move, and the council had to decide whether people wanted more intensification or more sprawl, and then work to provide it.
Property investors would benefit either way, he said. If the plan was to provide more smaller properties, investors could buy those to offer as rentals. If the plan ended up allowing for more urban sprawl, central areas – where a lot of investors own property – would become more valuable.
“Either way people will be happy and there will be opportunities.”
Source: Landlords.co.nzcomments powered by Disqus