THE GREAT DIVIDE

Subdividing a property can be a painstaking (and pricey) process. But the potential equity made from an existing property can be significant; and those who can afford the $150,000 plus for such a project are likely to be rewarded.

In Christchurch, a client of land surveying firm Survus recently made a net gain of $200,000 by subdividing the land at the back of their existing rental house and selling the vacant lot.

“This had no effect on the rental yield of the house but provided a good equity boost for the next purchase,” says Reuben Frizzell, Survus office manager.

North Shore couple Kim and Larry Gosden, who have several investment properties, subdivided a section off the back of a 1,000m² Takanini rental they owned, about three years ago, for a $170,000 gain.

Without hiring a consultancy company to oversee the whole process, the couple used only a surveyor and geo-tech engineers and arranged the site works and services connection