Doing your homework saves grief

Home-buyers can do plenty by themselves to guard against their biggest investment becoming a nightmare. ANNE GIBSON reports.

Stunning views were destined to be short-lived for residents of an Auckland apartment block who had no idea what was about to happen right next door.

The 120 investors in the 13-storey Oxford Apartments in the inner city enjoyed a sweeping outlook over the Domain and some even had harbour vistas.

But late last year, they got some bad news. A student accommodation building, also 13 levels, was planned just 1.5m away from theirs. This new block, replacing tiny buildings, would obliterate views for many of the Oxford residents at 13-15 Mount St and reduce their privacy.

Many were horrified about being built out, but they got no relief from the Auckland City Council, which told them the new development proposed for 11 Mount St complied with the rules and that the Oxford apartments should have been designed to take account of the fact that there was a development site next door.

Hard luck.

So how could the poor Oxford residents have known about this dreadful spectre?

The situation is not uncommon. Folk across the other side of town, who have paid initial deposits for an upmarket apartment on the old gasworks site in Beaumont St, are faced with the possibility that the Victoria Park flyover could be widened by two lanes.

The units have not even been built and the residents face problems with noise, vibration, pollution and visual intrusion.

On the other hand, other changes may benefit them. The Auckland Waterfront Advisory Group - charged with examining the potential of this area around the sea - has discussed the possibility of extending Victoria Park towards the water, so the Beaumont residents could benefit from an even larger park next door.

Residents around Henderson Valley Rd are about to see big changes in their area too. Developer Symphony Group has obtained permission to build three tall towers and 264 units, priced from only $139,000 and aimed at the rental market and first-time buyers.

Not everyone is pleased. A nearby school fears for its future and a service station owner is going to the Environment Court with an appeal because of possible traffic issues.

Our homes are our slice of paradise, so protecting our environment is important.

Since 95 per cent of all resource consents are on a non-notified basis, most of us do not even know of major changes before they are rubber-stamped and work begins. By then, it is usually far too late.

Local authorities have encountered increasing numbers of complaints from property owners unhappy with issues that affect them and their property.

In response, the Ministry for the Environment has produced a free booklet - Thinking of buying a property? - available from its offices and also available for downloading from the internet site.

T he publication outlines a few issues to think about before you take that big step of forking out for a deposit, whether it be for the classic family home or an apartment.

How can I protect myself before I buy a property?

The ministry says buyers should ask for a Lim (land information memorandum) report before their offer goes unconditional. A Lim will look at aspects such as the zoning of the area, and Auckland barrister John Waymouth says it also examines whether there are health, building or resource consent matters affecting the property. A Lim will show the zoning of the site, any rates arrears and any other council requirements affecting the site, Mr Waymouth says.

The ministry says getting a Lim report takes between one and 10 days and costs $80 to $400. The ministry also advises checking on other aspects which could apply to the property, such as motorway designations, road widening, earthquake and flood zones, airport zones, heritage buildings and wahi tapu/heritage sites.

If you think the property you want has development potential, spend some time checking it out and inquiring about statements such as "development or subdivision potential", the ministry says.

If I want to build on a property, what do I have to consider?

Councils have district plans which determine aspects of development, such as where you can put a building, how high you can go, how much of your site you can cover with buildings, how much noise you can make and what activities you can use the property for.

As Mr Waymouth tells his clients, would-be buyers should satisfy themselves that any improvements they want to make can be carried out.

He warns them that in the case of cross-lease properties, other owners of the property will need to give their consent.

What questions should I ask about a property?

The ministry has a list of "big questions" which you can ask the local authority about a property you are thinking of buying, or one you own. What is the site zoned for? What are adjoining or nearby properties zoned for? Are they zoned differently? What activities are allowed as of right in this zone? What activities are controlled, but generally do not require a neighbour's consent, or are relatively straightforward to get permission for? What kinds of activities are more difficult to get permission for?

The ministry also encourages buyers to ask more specific questions about a site. How easy is it to get permission to build multi-unit housing either on the property or in the neighbourhood? Will my privacy remain intact, or can my neighbour build something which will affect it? Can the neighbour build a two-storey house in front of my property and block the view? What can be built without my permission? How easy will it be to build an extension or garage? Can the trees on the property next door be cut down? Is there any other information in the district plan that may affect my property, such as hazard zones, motorway designations, etc?

What can I do to check out the property for myself?

The ministry says the great Kiwi DIY tradition can be applied to at least some of the home-buying process. You can find out quite a bit, but you will need a lawyer for the more technical aspects and the transaction.

Most local authorities provide an excellent free customer service, so you can go to them with the address you are inquiring about and a list of questions. At the office, you could get a copy of the cadastral (legal boundary) plans, as well as an aerial photograph of the property if you are prepared to pay for it. You can also find out the exact size of the site in square metres and the size of buildings in square metres.

How do I find out more about the property?

Local authority records should show where services such as stormwater are located, the ministry says. In some circumstances, this may affect where you can build, or can result in adding more to the cost of building. The ministry suggests that if the site has a shared driveway, you should find out its legal status, your rights of use and the maintenance responsibilities.

What can be built around me?

The ministry says neighbourhoods can change very quickly. New residential developments and businesses can pop up seemingly overnight. Common things which may be allowed in a residential area - with few controls on them - can include residential buildings, multi-unit housing and townhouses, cross-lease subdivisions, boundary adjustments, people setting up to work from home, residential-care facilities, creches and kindergartens, retirement homes and villages.

These activities could well result in minor earthworks, and their construction could have effects on the surrounding areas.

What can I expect from an inner-city apartment or unit?

The ministry says permitted activities in an inner-city area and its fringes that could have an impact on neighbours include noise from pubs and nightclubs, offices, special events and parades, manufacturing facilities, supermarkets, factories, panel-beaters, construction activities, high-rise buildings, street cleaning and rubbish collection.

The ministry advises would-be apartment-buyers to check out what the building is made of because the materials used indicate the likely level of soundproofing.

Some of the most common problems for inner-city apartment dwellers are noise and odour, the ministry says.

This is mostly because people are living closer together and sharing common walls, floors and ceilings.

Ministry of Environment