One of our most popular products is the minor dwelling. Over the past three years
Fuzo directors have developed over 100 minor dwellings in the Greater Auckland Region.
Many property investors have either bought directly off us or engaged our company
to develop and construct their minor dwellings to increase their cash flow and create
equity.
A minor dwelling is a secondary unit the council allows you to build on the same
title, providing you meet the local territorial authority’s requirements. For example
in Waitakere City (West Auckland), we can build a 65 sqm dwelling providing the
section is over 600sqm, suitable drainage solutions can be achieved and a few other
development factors are complied with. Although the council terminology for our
product is “minor dwelling”, they are more popularly regarded as townhouses as they
really do look more like a house, rather than the old fashioned granny flat many
people imagine a minor dwelling to look like. Our plans are our secret herbs and
spices and we have committed to excellence here, to maximize rental yield and equity.
Building Minor Dwelling's has proven itself to be the one strategy that creates
the best cash flow and equity on a consistent basis. An example of the financial
strength this strategy offers can be viewed on the Case Study page.
Fuzo offers investors the complete turnkey solution to this specialized form of
developing:
Let us find, and do the due diligence on a suitable property for you. Or if you
already have, or are looking at a suitable property, let us carry out the required
due diligence for you to confirm the development potential. We manage the entire
Building Consent process, from organizing our surveyor, architect and engineers,
to preparing the consent for application and even picking it up once signed off.
We will construct and project manage the entire process for you, as we outsource
construction. We will provide fortnightly client reporting on the progress of our
project. We believe we are the only construction company that makes this commitment
to its clients. The rules for Minor Dwellings can vary substantially depending on
the local council, and some councils do not permit a minor dwelling at all. There
are also many variables that can determine the suitability of a site. The general
rules are that the site must be a minimum of 600sqm and the minor dwelling can be
a maximum of between 60 - 75sqm (council dependent) and most council’s will charge
a variable figure for the reserve contribution of thousands of dollars, however
this figure is council and site dependent.
Even when a particular site does fit the council requirements, there is no guarantee
that the site is suitable because of various issues such as drainage and trees,
district plan etc. For those people looking to use the minor dwelling strategy,
you may have to invest hundreds of dollars on specifically designed plans for the
site, drainage analysis, site slope analysis and a raft of other things before going
unconditional on a property. The biggest problem most people face is that they never
know if a site is completely suitable until they spend their money first. With our
experience we can assist you with your minor dwelling due diligence, to ease the
hassle and save you money.
Minor Dwellings versus Subdivisions
The costs and time involved with subdivision are significant in comparison. When
you subdivide you pay both a development contribution, and a financial contribution
as opposed to only paying the development contribution when building a minor dwelling.
Also because the minor dwelling is built on the same title you may not be required
to apply for expensive resource consents and subdivision consents, and if you do
they may be cheaper. You only require building consent, which is non notifiable,
meaning you do not require permission from neighbours. Potential tenants can not
tell the property is not subdivided, so the rent ability and rental level remains
the same.
As a cash flow proposition, generally 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 usually decrease the cash flow
potential of the finished development. However if you have more resource and patience,
you could get far more equity from going through with a subdivision. And in some
exceptional cases we can built for our clients new 4 bedroom homes with 2 or 3 bedroom
incomes attached to them to create superb cashflow that can beat minor dwellings.

Click on your connection speed on the left to view FUZO on New Zealand TV programme
'House Trap'
If you wish to findout more or wish to purchase our Minor dwellings, please
contact us.
Fore more video clips,
click here.