We work with a small but growing number of existing builders and property owners who have developed portfolios of rental properties over a number of years. A large piece of our business involves adding additional bedrooms, new units, or relocatable houses to these sites to maximise return on investment for our clients.

Where an additional dwelling unit is being considered an allowance needs to be made for a Development Contribution Levy. This is a fee charged by Council for the extra demand on their infrastructure – such as the roading network, stormwater, wastewater, water, and for parks and reserves. With this fee varying from Council to Council, we also suggest structuring the proposal in such a manner that future subdivision can take place with minimal effort.

Plans.co.nz has helped a number of rental investors achieve higher returns and unlock the full potential of their land values. Low cost affordable homes can still be built, providing great rental returns, whilst attracting a higher class of tenants who are likely to stay for longer.

Recently we were able to assist a local investor who owns a property in Feilding. The property was located on a 1012m2 section and generating an income stream of around $9,400 pa. The owner was looking at ways to increase their return and was surprised when we told him it was possible to build two own units at the rear of the site. Important design factors were low maintenance, a fast build time to minimise inconvenience to the incumbent tenant and a high impact resistance to the interior.

Our designers chose Triboard to construct the walls of the property due to speed of construction, strength and indestructible properties that the board exhibits. Construction time was minimised to 10 ½ weeks and the design came in under budget. Both properties were rented before completion at $240 pw, which represented an 11% return on capital expenditure notwithstanding land value. Subsequently the older home located at the front was freshened up and the rent increased to $11,400 pa. The investor is now sitting back comfortably having increased both his property portfolio, income, and is now reaping the rewards all around with lower interest rates.