Nicola Kelland - Little houses

We have recently seen on the television programme My First Home, the contestants creating “little houses” on their home renovations. They seem to be the latest fashion in home improvements. The term tiny house, seems to be used for a couple of different types of structures. In Auckland you can build a tiny house on your property without a building consent, but they must not exceed 10 square metres in size, are only single-storey, are detached from your home and have no facilities. These are ideal as a studio for an artist, a home office away from the family home, or even a sleep out for extra guests etc. Depending on the cost of the building and how well they are landscaped into the existing home and garden, these could add some real value. It provides purchasers with alternatives and a buyer who might insist they need 4 bedrooms as they need space for a home office will seriously consider a 3 bedroom home and a tiny house. With many people now working remotely or from home the need for additional workspace is rising. The difference in the cost between adding another bedroom to your home and erecting a tiny house is significant. So while you don’t really have 4 bedrooms you have opened up the market and increased the number of potential purchasers for your home. That should be reflected in the eventual sale price.

The other type of tiny house we see are more minor dwellings, under the new proposed unitary plan the council has made provisions for these to be erected as a way of addressing the needs of families to house family such as elderly parents. The council calls these minor units, and there are clear rules about how big they are, and in which areas and residential zones they are permitted. These will require a building consent, as they will have services such as water and drainage, bathroom facilities etc. The ability to erect these tiny homes in areas where previously no additional dwellings were permitted, opens up options to home owners to a potential income stream from renting the tiny house, housing additional family or providing options for a growing family, rather than finding a new home.

Once again, the debate as to how much value is added to a property by the addition of a tiny house, will be dependent on the initial cost, how well it is designed, how appealing it is aesthetically and any potential income you may receive should you rent the property. But all things considered, I think there is a good opportunity here for homeowners as once again it increases your potential buyer base by providing options for purchasers.

This article is not giving you advice on the requirements or council regulations around erecting a tiny house. Please take professional independent advice and consult with your local council.