Homeowners could become property investors as a result of Auckland Council’s easing of density limits in selected areas of Auckland. Glenfield on the North Shore is earmarked as an area suitable for the new density limit with homes able to occupy as little as 200 sq metres.
Under this new limit a homeowner in Glenfield with say an 800 square metre section could remove their home and build four townhouses before they could build just two. This degree of intensification would also benefit first home buyers as the new properties would be smaller and thus more affordable.
Homeowners could thereby become property investors if they elected to live in one property while renting out the rest. Or they could own one, sell one and rent two or rent the lot or sell the lot – lots of options! Developers would also see more value in the new density limit allowing for multiple units so another option for the homeowner would be to sell to a developer on agreeable terms.
In the NZHerald the Auckland Council predicted the housing shortage would peak in 2018 and the shortage could be as high as 25,000 homes. New housing areas will accommodate thousands of new homes but they are suburbs without the necessary infrastructure like shopping centres, entertainment etc. So while they will attract many homebuyers, the easing the density limits in established areas is a more attractive proposition and could accommodate tens of thousands of new properties within a couple of decades.
Property Management company Pedersens Property Management specialise in North Shore areas and rental properties are in high demand. There is a lack of supply therefore the areas earmarked for density limits easing under the Auckland Unitary Plan is a step in the right direction.
This blog article was written for PropertyBlogs by Mobilize Mail.