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MINOR DWELLING

Accessory Housing

Concept

Multi-Use

Guesthouse. A Minor Dwelling can ideally serve as a guest house, with the guests having both privacy and excellent access to the main house. Unfornitually, some zonings often prohibit a convenient location to the main house, which can create unnecessary infrastructure costs. 

Gatehouse. A Minor Dwelling can ideally serve as a gatehouse where guests register before entering the secure compound of the main house. The gatehouse location may be at the entrance to the driveway or the front, side or rear of the main house subject to access. 

Retirement. A  Minor Dwelling can provide secure affordable accommodation for grandparents and are usually configured to meet their requirements, with one or two bedrooms, study, and disability access to the entrance and bathrooms.

Multi-key. A Minor Dwelling can also provide Multi-key accommodation for singles or couples. Multi-keys are usually configured with two bedsits with private decks on either side of a communal kitchen, dining and lounge with a shared alfresco deck.

Living Options

Preferred Titles

Subdivision. Most Minor Dwellings are not viable for subdivision when considering a single subdivision’s NZD 200,000 to NZD 300,000 actual cost. The best option is to invest the cost of subdividing in constructing a Minor Dwelling.    

Single Title. While a Minor Dwelling may cost less than NZD 200,000, the build area in some Councils can only be 65/m2.  The most affordable option is building and owning the main house and the Minor Dwelling on the single freehold title.   

Licence To Occupy. From a financial perspective, a 99-year ‘Licence To Occupy’ land-use agreement for the Minor Dwelling owner may be a good investment but a lousy investment for the landowner, especially if a future higher density rezoning option is future planned. 

Rental. Renting the Minor Dwelling can work well in the short term for both the tenant and the landlord. The landlord can rent the property short term before a potential sale with grandparents, teenage sons, daughters or a friend moving in.    

Social Options

Rental Options

Social. A Minor Dwelling is not suitable for a long term Government or a social housing group rental option as the limited 65/m2 size is too small to house a family and not large enough to create a Multi-key rental. 

Family. Grandparents can enjoy the family environment living in the Minor Dwelling close to the main house rather than in a retirement home—a perfect downsizing option for grandparents while transferring ownership of the main house to their children. 

Home Help. A perfect home help rental option for those living in the main house requiring home help for domestic chores, maintaining the garden or providing office or business assistance in work from home business. 

Disabled. A Minor Dwelling can provide the perfect lifestyle for disabled people with both privacy and a significant degree of independence. Subject to ensuring all health and safety disabled features are additions to the property.

Wealth Option

One Fifth The Cost

Subdivision Savings. Save the almost NZD 200,000 cost of subdivision and the further nearly NZD 100,000 lost through time delays and lost rental or the cost of renting elsewhere while waiting in another location. Instead, invest and build for a family member, staff or as a rental.

Rental Yield. With the land already owned, the cost of the build can double the rental yield. To further enhance rental yield, design to locate a bedsit on each side of a communal kitchen, dining and lounge,   

One-Fifth Of The Cost. With medium house prices now above a million dollars, a well-designed quality built Minor Dwelling with expansive decks and carport can cost less than two hundred thousand dollars.  

Wealth Creation. With the addition of a Minor Dwelling, the landowner can receive tax-free the development profit as Equity plus the average annual Growth as calculated by the Reserve Bank and Capital Gain determined by leverage, the house location, design, quality and area demand.  

Secure Your Future

Regular ‘How-To’ Bulletins

Valuable invest or sell audit. Future House 15 design and build options obtain 4x rental yields with up to 40% development savings. Enjoy up to 100% take-out finance with risk and tax minimisation options.