Sample Feasibility Report 2020

SUBDIVISION FEASIBILITY REPORT
for
100 Sample Avenue, Epsom, Auckland

18th June 2020
1
18th June 2020
Client
100 Sample Avenue
Epsom
Auckland 1024
Hi Client,
The following report is based on a site visit in June 2018 analysis of documents available in the public
domain. At the time of writing we had not yet viewed the property file or certificate of title. The aim
of this feasibility report is to provide you with valuable information regarding your property and the
potential for subdivision and development.
Property Information
Address of Property: 100 Sample Avenue, Epsom, Auckland
Locality: The property is a road front freehold lot situated off the southern side of Sample Avenue
within the Auckland City suburb of Epsom. Overall the housing stock in the locality is characterised by
residential dwellings of mixed age, interspersed with more recent infill housing. The nearest retail
complex in Greenwoods Corner is located within approximately one kilometre southwest of the
property. All parks and reserves are within a short drive. The nearest Primary School Epsom Normal
Primary School is located within a short walk of the property. The nearest Secondary School Onehunga
High School is located within two kilometres of the property. The property lies within a twenty-minute
drive from the Auckland CBD during off-peak traffic flows.
Legal Description: Lot XX Deposited Plan XXXXX , contained in Certificate of Title NAXX/XXX.
Capital Value July 2017: $2,175,000 (Land Value $1,940,000; Improvements Value $235,000)
Land Description: The existing property is a road front freehold lot, regular in shape and level in
contour and having an approximate area of 582m2.
2
Indicative issues related to the subdivision of 100 Sample Avenue, Epsom, Auckland
Sufficient Net Land Area: Yes
Indicative Contour: Level
Indicative Proposed Access Width: Appears sufficient, topographical survey to confirm
Storm Water Connection: Further investigation required; storm water soakage may be an option
Waste Water Connection: Propose connection into public line outside northern boundary of the
property on the council berm.
Water Connection: Reticulated -- to be established
Notable Trees on site: None
Controls/Environmental/Designations:
Controls - Macroinvertebrate Community Index – Urban
Overlays – Natural Resources – High Use and Quality Sensitive Aquifer Management
Areas – Onehunga Volcanic Aquifer
Natural Heritage – Regionally Significant Volcanic Viewshafts and Height Sensitive

Areas Overlay – 011 – One Tree Hill Viewshafts
3
Auckland Unitary Plan (Part Operative Version):

Much of the Auckland Unitary Plan that is not subject to legal appeals at the time of writing is now
operative.
Under the Auckland Unitary Plan (Part Operative Version) the property zoned Mixed Housing Urban.
There are no density rules in this zone provided any proposed development on the land complies with
all council rules including, but not exclusive to, maximum building height, height in relation to
boundaries, maximum building coverage and impervious surface areas, vehicle reverse manoeuvring
and outdoor courtyards.
4
Proposals
Option 1: Two Lot Subdivision: It is proposed that the site is to be subdivided into two
separate lots, each having approximate areas of 275m2 and 240m2 respectively (refer
Proposed Subdivision Plan on page 7). Proposed Lot 1 to be created around the existing house;
proposed Lot 2 to be created on the southern portion of the existing parent lot, which will be
vacant. After completion of the subdivision and the issue of separate titles we propose either
selling the newly created lot or constructing a dwelling on the lot to be sold or rented.
Option 2: Three Lot Subdivision: It is proposed that the site is to be subdivided into three
separate lots, each having approximate areas of 275m2, 105m2 and 110m2 respectively (refer
Proposed Subdivision Plan on page 10). Proposed Lot 1 to be created around the existing
house; proposed Lots 2 and 3 to be created on the southern portion of the existing parent lot,
which will be vacant. After completion of the subdivision and the issue of separate titles we
propose either selling the newly created lots or constructing dwellings on the lots to be sold
or rented, or a combination of each.
Option 3: Five Lot Subdivision: It is proposed that the site is to be subdivided into five separate
lots, ranging from 90m2 to 110m2 (refer Proposed Subdivision Plan on page 13). All proposed
lots to be created as vacant lots. After completion of the subdivision and the issue of separate
titles we propose either selling the newly created lots or constructing a block of townhouses
on the lots to be sold or rented, or a combination of each.
5
Locality Map
6
Existing Lot
7
Proposed Subdivision Plan (Option 1)

8
Estimated Project Costs (Option 1)
A. Subdivision
Our research and analysis on your property indicate the cost to complete the subdivision would be
approximately $170,000 (Refer Costing Schedule on page 19).
Estimated Subdivision Cost $170,000
Contingency (10%) $17,000
Total Subdivision Cost $187,000
B. Subdivision and Build
We are aware that construction costs vary greatly. Therefore we have adopted a dwelling size and
rate per square metre that we consider are appropriate for the zone and locality. For this option we
have proposed a two level, stand-alone dwelling providing four bedrooms and living
accommodation.
Build cost (180m2 @ $2,700 per m2) $486,000
Build Contingency (10%) $49,000
Estimated Total Development Cost $722,000

9
Estimated Financial Return (Option 1)
Our research and analyses indicate that the current value of proposed Lot 2 is between $500,000
and $600,000. For this exercise we have adopted the mid-point of $550,000.
We believe a new build on a subdivided lot would currently sell between $1,150,000 and
$1,350,000. For this exercise we have adopted the mid-point of $1,250,000.
Option A: Subdivision
Lot Value Estimate $550,000
Less Subdivision Costs $187,000
Estimated Gross Return $363,000
Plus Value of Existing Dwelling on 275m2 $1,000,000
Option B: Subdivision and Build
Property Value Estimate $1,250,000
Less Total Development Costs $722,000

10

11
A. Subdivision
have proposed three level, attached duplex dwellings each providing three bedrooms and living
accommodation.
Builds cost (2 x 140m2 @ $2,700 per m2) $756,000
Estimated Total Development Cost $1,110,000

12
Our research and analyses indicate that the current value of each of proposed Lots 2 and 3 is
between $400,000 and $450,000. For this exercise we have adopted the mid-point of $425,000.
Lots Value Estimate (Two Vacant Lots) $850,000
Properties Value Estimate (Two Improved Lots) $2,200,000
Less Total Development Costs $1,110,000
Estimated Gross Return $1,090,000

13

14
A. Subdivision
have proposed three level, attached dwellings each providing three bedrooms and living
accommodation.
Builds cost (5 x 140m2 @ $2,600 per m2) $1,820,000
Estimated Total Development Cost $2,513,000

15
Our research and analyses indicate that the current value of each of proposed Lots 1 -5 is between
$400,000 and $450,000. For this exercise we have adopted the mid-point of $425,000.
Lots Value Estimate (Five Vacant Lots) $2,125,000
Properties Value Estimate (Five Improved Lots) $5,250,000
Less Total Development Costs $2,513,000
Note: While our costs and return calculations have a contingency allowance, there is no allowance for
financing the project. Please be aware that there will be holding costs incurred if finance is required.
There is also no allowance for associated selling costs including marketing costs and real estate agent’s
commission. These should all be taken into consideration in assessing the overall feasibility of the
subdivision.
16
Rental Appraisal
We believe each new dwelling providing three bedrooms and living accommodation, built to a
standard and specifications typical of the locality would currently rent for approximately $875 per
week.
We believe each new dwelling providing four bedrooms and living accommodation, built to a standard
and specifications typical of the locality would currently rent for approximately $1,075 per week.
Comparable Sales
Below is a sample of recent property sales in the locality:
Source – Property Guru by Core Logic

17
What are the Benefits of Working with We Subdivide?
Our Clients Only Deal with Us

You only have to deal with one company throughout the entire process – We Subdivide! We can
manage the entire process from subdivision concept through to separate titles and build you a new
home if that’s the plan. Of course we will keep you up to date on progress, but sit back and relax, We
Subdivide has everything covered.
Dedicated Sales
We have partnered with Wallace and Stratton Real Estate in Auckland so we can sell your newly
created land through a house and land package or as a finished build.
Knowledge Base
We have established relationships with architects, planners, surveyors, engineers, land development
specialists and construction companies. The result is an efficient process.
Minimise Financial Risk

If you want to cash out we will market your new lot as soon as subdivision resource consent has been
approved. We will work hard to get an unconditional agreement in place with a buyer subject to
separate titles being issued. This helps with keeping your bank manager happy and your stress levels
to a minimum.
Trust and Confidence

We work for our clients. Simple as that. We see our job is to maximize the return and minimize the
expense incurred. If we can save you money along the way, fantastic – that’s more in your pocket.
Tailored Package
Your property is your most valuable asset and we appreciate that. In most cases you only have one
chance to capitalise on the land you hold. We will sit down with you before you commit and gain a
real understanding of what you want to achieve by subdividing your property. We will then formulate
a specific plan and timeframe to best achieve your goals. Regardless of the end goal you will maintain
control over what happens on your land from the subdivision plan to the proposed new build.
Transparent Policy
We will agree a fixed fee for us to facilitate the subdivision for you. All contractors and consultants
required throughout will be quoted and agreed upon prior to any work being commenced. After
completion of each contract the invoice will be sent direct to you for payment.
18
Next Steps…
If you are comfortable with the findings in this feasibility report and working with We Subdivide then
the next steps will be:
▪ Select the option that will best achieve your goals so we can tailor a package specific to you.
▪ Project funding. Subdivisions are a significant investment. We work closely with a number of
registered financial brokers and banks who would be happy to sit down with you discuss how the
subdivision will be funded and ways of structuring a loan if required.
▪ Talk to an accountant. There are often tax implications when profiting from subdividing. We would
recommend getting advice from a chartered accountant prior to starting so you have a clear
understanding of your financial obligations moving forward.
▪ After the above issues have been resolved and you are comfortable with subdividing, the next stage
would be to formally engage us to manage the subdivision project for you. We would then arrange
a formal pre-application meeting with a planner and development engineer at the relevant council
to talk through the proposal. Following this meeting we will be able to gauge whether council will
support our subdivision proposal. It will also raise any issues that may occur so we will be in a better
position to be able to overcome and mitigate these issues.
▪ The next steps will be preparing to apply for subdivision resource consent. This typically involves a
survey and scheme plan, geotechnical investigation, CCTV inspection of services, engineering
report and resource consent report.
19
Appendices – Costings Schedule (Option 1)
Subdivision Costing Schedule for: 100 Sample Avenue, Epsom, Auckland

Being a Two Lot Subdivision
Estimated Cost Notes
Resource Consent Application costs

Concept House Design Estimate $ 5,000.00
Topographical Site Survey Estimate $ 1,650.00
Pre-application meeting with council Estimate $ 300.00
Subdivision Scheme Plan Estimate $ 600.00
CCTV Inspections Estimate $ 600.00
Geo-technical Report Estimate $ 2,500.00
Engineering and Infrastructure Analysis Report Estimate $ 6,500.00
Subdivision & Land Use Consent Application Report Estimate $ 2,500.00
Total $ 19,650.00
Engineering & Civil Construction Costs
Engineering Design and Approval and Site Supervision Estimate $ 12,000.00
Provide for Services (Power, Phone, Water) Estimate $ 6,000.00
Provide for Wastewater Estimate $ 15,500.00
Storm Water (Assumed Soakage is Approved) Estimate $ 12,000.00
As-Built Survey for Public Drainage Estimate $ 1,800.00
Demolition and Retaining Estimate $ 6,000.00
ROW Concrete Driveway Extension Estimate $ 5,000.00
Total $ 58,300.00
Associated Fees
Council fees - Processing, Monitoring, Compliance, Inspections &

Estimate $ 13,000.00
Certificates
Council Development/Reserve Contributions Estimate $ 19,465.00
LINZ fee incl LINZ Survey Estimate $ 5,500.00
Chorus Connection Fee Estimate $ 1,200.00
Vector Connection Fuse Estimate $ 2,012.50
Water Care Connection Estimate $ 12,750.00
Project Management Fee Estimate $ 16,000.00
Total $ 69,927.50
Totals
Total (Excl GST) $ 147,877.50
GST 15% $ 22,181.63
Total (Incl GST) $ 170,059.13
Notes:
Stormwater connections require further investigation and input from an engineer.
We have assumed for this costing estimate that the existing driveway and crossing will not be required to be replaced, we have allowed for a small extension of the existing driveway.
Note the Council Development and Water Care Contributions are fixed however are subject to change.
Disclaimer:
The information contained herein is opinion only based on information available. We Subdivide Ltd. reserves the right
to remove or amend any information contained within the document.
The information contained in this document is confidential, may also be legally privileged and is intended for your use solely.
If you are not the intended recipient, you must not read, use, disseminate, distribute or copy this document.
Anything in this email which does not relate to We Subdivide Ltd. official business is neither given nor endorsed by We Subdivide Ltd.
official business is neither given nor endorsed by We Subdivide Ltd.
20

Being a Three Lot Subdivision

Subdivision Scheme Plan Estimate $ 750.00
Total $ 24,800.00
Total $ 75,800.00
Associated Fees

Certificates
Total $ 119,855.00
Totals
GST 15% $ 33,068.25
Notes:
We have assumed for this costing estimate that the existing driveway and crossing will not be required to be replaced, we have allowed for an extension of the existing driveway.
Disclaimer:
21

Being a Five Lot Subdivision

Subdivision Scheme Plan Estimate $ 1,200.00
Total $ 37,750.00
Total $ 152,500.00
Associated Fees

Certificates
Total $ 213,710.00
Totals
GST 15% $ 60,594.00
Notes:
We have assumed for this costing estimate that the existing driveway and crossing will not be required to be replaced, we have allowed for an extension of the existing driveway.
Disclaimer:
22
Appendices – Possible New Build Options

23
Disclaimer
Please note that we have relied upon relevant Information provided at the time of writing. This study and report
are based on site visits and data collation. We have assumed that any information received is true and accurate.
All estimates of costs, values and returns in this report are opinions only, based on information at hand as at the
date of writing. All figures included in this report are GST exclusive unless stated otherwise. We reserve the
right to amend any part of this report and accept no liability for any loss incurred as a result of reliance on any
information provided in this report. This report does not guarantee Council will issue any subdivision or other
consents for this site. Any subdivision application must be lodged fully and correctly with the relevant council.
Non-Disclosure
This report has been prepared for use by the client(s) named at the top of this document. Disclosure of this
report to third parties other than your professional advisers, consultants and financiers is not permitted. No
responsibility is assumed or implied to any third party for the whole or any part of the contents.

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SUBDIVISION FEASIBILITY REPORT

100 Sample Avenue, Epsom, Auckland

18th June 2020

Address of Property: 100 Sample Avenue, Epsom, Auckland

Sufficient Net Land Area: Yes

Indicative Contour: Level

Indicative Proposed Access Width: Appears sufficient, topographical survey to confirm

Water Connection: Reticulated -- to be established

Notable Trees on site: None

Controls - Macroinvertebrate Community Index – Urban

Natural Heritage – Regionally Significant Volcanic Viewshafts and Height Sensitive

Auckland Unitary Plan (Part Operative Version):

Proposed Subdivision Plan (Option 1)

Estimated Project Costs (Option 1)

Estimated Subdivision Cost $170,000

Contingency (10%) $17,000

Total Subdivision Cost $187,000

B. Subdivision and Build

Total Subdivision Cost $187,000

Build cost (180m2 @ $2,700 per m2) $486,000

Build Contingency (10%) $49,000

Estimated Total Development Cost $722,000

Estimated Financial Return (Option 1)

Lot Value Estimate $550,000

Less Subdivision Costs $187,000

Estimated Gross Return $363,000

Plus Value of Existing Dwelling on 275m2 $1,000,000

Option B: Subdivision and Build

Property Value Estimate $1,250,000

Less Total Development Costs $722,000

Estimated Gross Return $528,000

Plus Value of Existing Dwelling on 275m2 $1,000,000

Proposed Subdivision Plan (Option 2)

Estimated Project Costs (Option 2)

Estimated Subdivision Cost $254,000

Contingency (10%) $25,000

Total Subdivision Cost $279,000

B. Subdivision and Build

Total Subdivision Cost $279,000

Builds cost (2 x 140m2 @ $2,700 per m2) $756,000

Build Contingency (10%) $75,000

Estimated Total Development Cost $1,110,000

Estimated Financial Return (Option 2)

Lots Value Estimate (Two Vacant Lots) $850,000

Less Subdivision Costs $279,000

Estimated Gross Return $571,000

Plus Value of Existing Dwelling on 275m2 $1,000,000

Option B: Subdivision and Build

Properties Value Estimate (Two Improved Lots) $2,200,000

Less Total Development Costs $1,110,000

Estimated Gross Return $1,090,000

Plus Value of Existing Dwelling on 275m2 $1,000,000

Proposed Subdivision Plan (Option 3)

Estimated Project Costs (Option 3)

Estimated Subdivision Cost $465,000

Contingency (10%) $46,000

Total Subdivision Cost $511,000

B. Subdivision and Build

Total Subdivision Cost $511,000