Minor dwellings were once the reserve of property developers and property investors seeking more rental return. Now minor dwellings are popping up all over Auckland and owner occupiers are also using them.
In the past 18 months new smaller homes have been built on land that had just one home. In a NZHerald news item – a QV spokesperson is quoted:
“James Wilson, QV home value Auckland valuer, said that in the past 12 to 18 months, valuers had noticed a big jump in the number of smaller new places being built on sites which previously had only one house.”
The biggest rise in minor dwellings is in the south and west of Auckland where the sections can accommodate the additional property. The original home is either moved to the front or rear of the section and a new smaller home added.
PropertyTutors Sean Wood mentors property investor clients purchasing in both these areas of Auckland and confirms it’s always been a core strategy – that is to acquire maximum return on the initial investment either with the addition of another home or renovation of the existing dwelling to include more bedrooms. The end game is essentially the same, that is to increase the rental return from the section.
Owner occupiers are also adding more value to their properties with the inclusion of an additional smaller home to assist with mortgage payments or just increase cashflow. Creativity is alive and well in the property market with both investors and owner-occupiers maximising their property’s earning potential particularly in the Auckland market. Will it catch on elsewhere in New Zealand?
This blog article was written for PropertyBlogs by Mobilize Mail.