The more, the merrier – benefits of terrace housing

For many people looking to develop a property, the phrase terrace housing pops up pretty frequently. So today, we thought we would discuss a bit of terrace housing and how it may work for you.

What is Terrace Housing?

Terrace housing is where each property shares a wall with its neighbour to fit more housing in one area. It’s a type of medium-density housing used for many cases across Europe and the UK due to the lack of land space available to accommodate everyone who lives there.

Terrace housing hasn’t been a popular choice for developers in Auckland in the past, as many homeowners have come to expect their own four walls on a property they were looking to purchase. However, since Auckland’s rapid expansion over the last 30 years, first home buyers and developers alike are shifting their thinking around terrace housing, and we’re starting to see them pop up in almost every suburb.

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Benefits of Terrace Housing

So, you own a property in Auckland, and you want to make a positive investment into the Auckland housing market? Great! Why not consider a batch of terrace houses.

Affordable to Build

Terraced houses are often simple, repetitive designs constructed with a single goal in mind, to maximise the investment of the property they are being built on. There is no need for the hefty exterior material costs, with each dwelling being connected.

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Pre-consented Plans Create Certainty

Many new home builders come across a plan, decide they like it and disregard the details, causing problems later down the line. With many pre-consented plans, developers and builders alike have certainty that a plan will work and everything has been consented to and approved already.

A Starting Point for any Land Developer

A single block of terrace houses can be an ideal way to enter the world of property development. Especially in the Auckland market, your investment will likely be positively geared, and you’ll be able to see a return regardless of whether you plan to rent or sell once the project is completed.

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Auckland Unitary Plan

Auckland Council has understood the need for terrace housing developments. It has created an entire zone specifically designed for medium density development within the Auckland Unitary Plan. This is the highest intensity of house and building zoning intended to enable a higher intensity of development. The buildings in this zone are near town centres and public services for the residents to access easily.

The Auckland Unitary Plan also has the Mixed housing urban zone, which also allows houses to be three stories and take on a smaller terrace housing development. Over the years, these zones will begin to change in their appearance as the buildings change from their original houses to the new three-storey terrace houses and low-rise apartments. The idea of this zone is to increase the housing options for those who are looking to live closer to the city.

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If you have read this and think this is something you might be able to do with your Auckland property, please download our free subdivision guide or get in touch with us via our contact us page. Who knows, maybe you’ll start your journey to becoming the next property developer in Auckland.