For property owners in or approaching retirement, the move to a retirement village or just downsizing can be economically challenging.
The subdivision of the existing family home can avoid or at least delay the need to enter into either an occupation licence in a retirement village or the upgrade to a newer but smaller residential unit. Both of these options can significantly reduce the disposable capital for retirees without always producing the best lifestyle outcomes.
There is no doubt that retirement village accommodation affords many benefits with available health care, meals and services and in many cases is entirely appropriate. For those wishing to retain more independent living, subdividing the family home to reduce the workload of maintaining a large section is an attractive option.
With residential sections being in scarce supply in Hawke’s Bay (Napier City Council sections are currently selling for in excess of $300,000) a well located residential subdivision could be expected to produce upwards of $200,000, after paying Council development costs of approximately $20,000 and the surveyor and fees of around $10,000. The existing home can be upgraded and cash released to the owners with often little appreciable drop in the property value.
For more information regarding subdivisions consult our property team who are experienced in coordinating survey approvals, resource consents and funding for your subdivision.