Owner Occupier / Landlording

A Focus On Property Investment

Owner Occupier / Landlording

Boarder Income – This is a cost-effective way to start making money from property. It’s often an option for younger homeowners who had bought a property with multiple bedrooms and rent some of them out, getting help to pay off the mortgage and some of the household bills.


Foreign Students – With the rise in the number of international students now studying at New Zealand high schools and tertiary education centers, more and more Kiwi families are hosting foreign students in their homes.


Self-contained Flat – These are usually attached studios, one, or two-bedroom units with their own entrance, bathroom/toilet, and kitchenette amenities. They often have their own power/gas connection, allowing the tenant to pay for just what services they use. Self-contained flats should be permitted (check the LIM report). Getting the area permitted will add value to the property.


Granny Flats – Granny flats are not usually permitted as self-contained units but should be under the main house consent. This is the internal reconfiguration of an existing residential property to create a separate space for boarders or foreign students. It may or may not have its own entrance.


Check your tax position with the IRD as to any income tax payable. Tax requirements on this type of rental & boarder income are set annually. Check the private boarder income requirements on the IRD website.


Adding a minor dwelling – Under the new Unitary plans, many areas can now have an additional minor dwelling on an existing section without the need for a subdivision. “Specialist minor dwelling building companies undertake the construction of such dwellings as their core business and advertise in local newspapers and property press. Under council bylaws, minor dwelling-classified homes can only contain up to 65 sqm of living space – which should be enough for three bedrooms. A minor dwelling cannot be sold separately from the main property but can be rented.


Subdivision – If your section is big enough, you may be able to subdivide into smaller portions with the cost of subdividing around $70 – $100,000. Auckland. You could then sell the bare land, build a new home or relocate a cheaper house on to the property.