Ruakaka is booming and dairy farmer Graeme Finlayson is cashing in by selling just over 10ha of his Ruakaka land to developers for $2.5million.
But even with that money in his pocket, he says he's still happy to stay on his remaining property, milking his cows.
He is one of several land owners cashing in on the Bream Bay area's skyrocketing popularity.
Mr Finlayson has lived there all his life, buying his land on Marsden Pt Rd from his father in 1972. Eleven years ago he bought about 10ha on Tamure Pl. because he wanted to expand his farming operation. The land, which was later rezoned residential, has increased in value 20-fold since then.
"I didn't really know it would take off. I bought it to farm it," he said.
But when the Hopper development company from Orewa came knocking last year he was happy to part with the land for $2.5million.
Hopper Developments Ltd, when it gains consent, will develop two blocks adjoining the Ruakaka River with 81 sections on Tamure Pl. and 32 sections on Marsden Pt Rd.
Those are two of several subdivisions for which resource consent applications have been lodged by developers.
If successful they would result in about 700 extra homes springing up around Ruakaka in coming years.
Hopper Developments project manager Howard Jury said Ruakaka had been a "dormant suburb" for too long.
"It's one of those little gems in Northland's crown that has been overlooked for a long, long time. Properties have been grossly undervalued until now."
Ruakaka's beach, deepwater port and close proximity to Whangarei and Auckland added to its value, he said.
Mr Finlayson still has 32.4ha of residential zoned land left on Marsden Pt Rd but he doesn't intend selling that for at least five years.
For now he's happy in his paradise, milking more than 120 cows daily and playing golf.
Being paid $2.5million was nice, "But you still have to do something and I don't mind milking cows," he said.
"It's a good area to live in and it's just going through a growing phase at the moment."
Ruakaka would go ahead when subdivisions were added, he believed.
"Lots of people have come into this area over the years and earned their money and taken it away.
"Now we will get people who will come and stay."
Existing houses throughout the Bream Bay area, including Ruakaka, were also taking off in value.
State houses at Ruakaka that were selling for less than $100,000 five years ago were now selling for more than $300,000, while coastal section prices in the area have increased up to fivefold.
* Developers to foot the bill
Property developers eager to establish sections at Ruakaka, near Whangarei Harbour, are prepared to pay millions to get the area's sewerage problems fixed instead of waiting for the Whangarei District Council to do the job.
The council has put a stop to the resource consent applications of three companies wanting to develop hundreds of residential sections at Ruakaka. It wants the area's sewage capacity increased before more houses are built.
But rather than wait for the council to find funding to solve the issue, the development companies intend to do it themselves.
Hopper Developments project manager Howard Jury said his company was in talks with five other development firms to form a "Bream Bay alliance" and carry out the sewerage upgrade. Hopper wants to begin developing 110 sections at Ruakaka this winter.
The WDC told developers the cost of fixing the inadequate sewerage capacity was about $1.2million but the development companies believe it would be about $2million, he said.
"We will effectively undertake and carry out that work on council's behalf. It is a quicker way forward for us."
WDC resource consents manager Alister Hartstone said the council was still talking to the developers. He would not speculate on what the council might contribute to the sewerage upgrade.
Mr Jury said that when they applied for resource consent devlopers were not told of major sewerage infrastructure shortcomings at Ruakaka.
Some land owners have criticised the council for not upgrading the infrastructure since zoning the land residential - a move believed to have been made in the late 1990s. But Mr Hartstone said: "In most cases where you have large-scale developments there's an expectation that the upgrading and extension of (infrastructure) systems will be provided by developers."
Ruakaka farmer makes hay while prices shine
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