What products do you offer?
We offer development and building products and services. We have plans for sale customized to be investor friendly products. We also provide you with properties that you can buy from us. And we offer you our expert in development or construction service, where we are happy to obtain building and resource consents for you, project managing this developments process, and also quoting and project managing your construction project too, through to code of compliance. So in summary we offer:
- 1) Full development service
- 2) Full construction service (bring us your plans to quote)
- 3) Ready made pre-packaged properties
- 4) Plans of investment properties for sale
- 5) A range of due diligence services for development properties
Why should Investors focus so heavily on cashflow?
There are many reasons why, but most importantly because investing in property is just like running any other kind of business - without positive cashflow the business simply cannot survive.
Also when investing any of your hard earned money into any form of investment whether it's property or shares, you want an investment that puts money into your pocket each week rather than taking money out.
Another very important reason for investors to focus heavily on cashflow is because the banks themselves are also very focused on your ability to service the debt, or debts if you intend to continue buying property. By strengthening your cashflow position you are increasing your ability to borrow. If cashflow is neglected you will very quickly run out of borrowing capacity.
How do you create cashflow?
There are many ways to create cashflow from upgrading a properties appearance so you can increase the rent, to adding another bedroom. You could let your property out semi or fully furnished, or even add a carport, garage or minor dwelling.
Any of these strategies will work and we would encourage to look at all ways to maximise your cashflow.
What is currently the best strategy to create Cash flow?
By far the best solution in 97% of cases is to add another source of rent (another house or minor dwelling) the reason this works so well is the rent you receive off this new building is the same as if it were the house next door. The big difference is you already own the land, which is sitting idol. Basically if you buy a property and add a minor dwelling you get two rental incomes for the price of one and a half. This lower acquisition cost means higher returns for you.
There is also significant depreciation to claim on the new building, as new buildings attract an additional loading on the building fit-out and chattels. This will provide you with tax losses and tax refunds even though you don't have any real money losses. Many Investors often misunderstand this point.
What is a Minor Dwelling?
A minor dwelling is a secondary unit the council allows you to build on the same title, providing you meet the council’s requirements. For example in Waitakere we can currently build a 65sqm dwelling providing the section is over 600sqm, and suitable planning requirements (eg. drainage solutions) are met.
Why is the Minor Dwelling strategy better than Subdividing?
The costs and time involved with subdivision are huge in comparison. When you subdivide you must pay a Development Contribution, and a Financial Contribution as opposed to only paying the Financial Contribution when building a Minor Dwelling.
Also because the minor dwelling is built on the same title you are not required to apply for Expensive Resourse Consents and Subdivision Consents. You only require Building Consent, which is Non Notifiable, meaning you don't require permission from neighbours. Potential tenants can tell if the property was subdivided or not, so the rent ability and rental level remains the same.
So as a Cash Flow proposition Minor Dwellings are far superior. This does not mean you should never subdivide. In many cases the subdivision can create a lot of Equity, although the extra costs involved will decrease the Cash Flow of the finished development.
How do I know if a property can have a Minor Dwelling built on it?
Basically if a property is over 600sqm and has reasonable access to the proposed building site, there is a good chance we can build for you. Before making a purchase decision we strongly recommend discussing the property with us.
Why is an FUZO Minor Dwelling so much better than others?
Being Property Investors ourselves we are well aware of what adds value and what doesn't. We are also well aware of what increases Cash Flow and what doesn't. Our product has been tried and tested and is specifically designed to achieve the very best of both worlds. From our talented Architects to our quality building team, we have streamlined our process to deliver you the very best "value for money" and "return on investment" available.
Am I able to view an FUZO Minor Dwelling?
Absolutely. Please contact us to make a time to see us at our show home at 100 Kemp Road, Massey, West Auckland during business hours.
Do you do development or construction for home owners?
Yes we do. Through our networks we work in very closely with experienced registered master builders that are experienced in building quality homes. It is not our core business, but certainly an area that we have significant expertise in. Our Construction Manger to date has been associated with 16 Registered Master Build Gold Awards in all categories of building price.
Are you interested in doing any home alterations or renovations?
Not really. However if you have a property that we are building on the same or neighbouring site, then we can assist you. We would also be interested in tackling alterations or renovations for budgets over $50,000.