The costs of subdivision vary enormously, but there are four component parts affecting the costs. The team at Birch can assist you to understand these costs so you can prepare budgets. The costs are:
Council's fees and charges have two main parts. Firstly their fees for receiving and processing applications and processing the necessary certificates and documents once consents have been issued. They do this on a full cost recovery basis.
And secondly their financial contributions for permitting additional titles to be created. Financial contributions can be charged (under the Resource Management Act) to mitigate any effects of creating the titles, and Development Contributions (under the Local Government Act) to fund the effects of growth in the District. All these fees and charges are generally reviewed and amended on an annual basis.
Development contributions are becoming a significant cost in subdividing land, particularly residential and business land, and are likely to be of the order of 10% of the value of a new section, and can be between 30% and 70% of the total subdivision costs.
The costs of developing sections vary greatly between urban and rural sites, and this is generally a function of the range of services that need to be provided, the costs of providing these services, and the extent of earthworks. On a rural site the main services to be provided are power and telephone and physical access. On an urban site additionally water supply, wastewater, and stormwater services need to be provided. Urban services can be particularly expensive if Council's infrastucture is old or substandard, or is not available in the immediate vicinity.