With soaring land and property prices, more and more families are exploring intergenerational housing options to provide housing for their loved ones.
Whether it’s buying a piece of land in the countryside with enough space for several houses or cutting down the garden to give it to the children, people seem to be increasingly keen to keep it in the family.
Housing affordability has deteriorated to the worst level on record, with the average property worth 8.8 times the average income at the end of last year, real estate analyst CoreLogic said in its latest report on the housing affordability.
Rob Hard of Upper Hutt, has purchased just over 10 acres near Greytown, Wairarapa, with the intention of moving a home for his family with enough room for a small dwelling for his father nearby.
He envisioned that when his teenage sons were a little older he could provide the land to give them the opportunity to build their own housing estates in the future.
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“Because you want to give your kids a little boost in life,” he said.
Tough deals in property in the Wellington area and said he was also seeing increased interest in the multi-unit housing market.
“People often want everything under one roof with relatives coming to live with them, or they want a little granny flat type situation.”
While city landlords with large enough sections had been infilling for some time, real estate agents were noticing that many of them were now thinking of family.
South Wairarapa estate agent Benn Milne said over the past two years he has noticed a trend among landowners to subdivide land into multiple lots, often with provisions for family members.
“Parents with a decent sized section are carving out a bit of ground for their kids. It’s definitely not a silver spoon situation, the children have to bear some of the costs for this.
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The Lubich-Sparagna family live off the grid on Southernthread Road in Brooklyn, Wellington. They subdivide a 1 ha piece of land so that others can do the same.
Mike Shaw, of AdamsonShaw surveyors, said family carving up titles in rural areas had always happened, but they were seeing more subdivisions of urban properties, if the finances stacked up.
He said in places where urban land was still reasonably affordable, such as Tararua District, there seemed to be more people subdividing sections for family members.
“It happens, but I don’t know if it happens in large numbers in residences, because it’s difficult. You have to pay a lot to make a residential development.
Shaw said the residential sections of Wairarapa cost around $100,000 right after the GFC, but now fetch over $300,000, which changed the dynamic about subdividing larger lots.
Nicola Todd, of Hutt-based Cuttriss Consultants, said widespread subdivision was happening in the Wellington area and accommodation for family members was one of the drivers.
She said whether it’s through family members providing land or people approaching landowners with a subdivision proposal, there was a lot of interest in finding new ways to secure a house lot. affordable.
“People are getting a little more creative, especially this younger generation, about how they enter the market.”
Masterton property manager Prue Hamill of Harcourts Hamill Realty said they were seeing more examples of family ties in real estate and subdivision transactions.
“I’ve had retirees who ended up going out and living with their families, and they shared land for them. This kind of thing happens, which I find kind of nice – a family taking care of the family.
New Zealand’s median selling price has risen 44% since January 2020 to $880,000, according to REINZ.
Chief executive Jen Baird said rising property prices as well as market headwinds such as tighter lending policies were making it difficult for some buyers.
“Over the past few years we’ve seen an increase in people considering different ways to get on the property ladder – some banding together with family or friends or using the ‘mom and dad bank’ as a source of income, funds or equity.