Question :
HiWe were about to start development work on a property we have in Hamilton to demolish the existing house and build two new houses in a duplex situation.  The existing house is untenanted and substandard and would require a lot of money spent on it to bring it to compliance.  Our preference would be to demolish this and build two new fully compliant duplex unitsTo fund this build from the bank we would need to have a confirmed sale on one of the units.In the current market this is not an option as we dont know what effect Covid 19 will have on house prices but it will probably be down and this could be significantSo this idea is no longer a good short term plan (it was pre covid) but is still a good long term plan as Hamilton has a shortage of good housingIt will also employ our own staff and a contract builder.Would the government help with funding a project like this?

Question submitted 16/04/20 @ 01:22pm
Industry: Property
  • Hi there. I suggest getting in touch with Kainga Ora/Housing NZ/Panuku to see if they are looking for your sort of property. They have been very public about kicking off “spade ready” projects and surely need sites to make it happen. Kia kaha.

    You could contact http://www.communityhousing.org.nz/our-place/social-housing-reform-programme/funding-social-and-affordable-housing.
    There are also some good developers in Hamilton who you could approach and see what their advice would be…

    Hi. You may already be well ahead of the consenting phase given you mention commencing the “development work”. If you haven’t already, get ahead of the curve on the consenting front as it sounds like the building is not worth a bandaid approach of sorts by investing in a short term holding income solution. Commission a local design firm to put together artist impressions of what the two dwellings will look like on the off chance you can secure a purchaser, or you may even look for a JV partner who has money to invest. With your expertise in landscaping (sharp-looking website by the way) and your builder contact, you already have a lot of resources a lot of developers or investors are looking for giving you a competitive advantage. Cheers!

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