Rotorua Daily Post
  • Rotorua Daily Post home
  • Latest news
  • Business
  • Opinion
  • Lifestyle
  • Property
  • Sport
  • Video
  • Death notices
  • Classifieds

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • On The Up
  • Business
  • Opinion
  • Lifestyle
    • All Lifestyle
    • Residential property listings
  • Property
    • All Property
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
  • Rural
  • Sport

Locations

  • Tauranga
  • Te Puke
  • Whakatāne
  • Rotorua
  • Tokoroa
  • Taupō & Tūrangi

Media

  • Video
  • Photo galleries
  • Today's Paper - E-Editions
  • Photo sales

Weather

  • Rotorua
  • Tauranga
  • Whakatāne
  • Tokoroa
  • Taupō

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Rotorua Daily Post / Business

Jeremy Tauri: Know the costs before you subdivide

By Jeremy Tauri
NZME. regionals·
24 Dec, 2014 04:00 PM2 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Land makes up a large part of the price when building.
Land makes up a large part of the price when building.

Land makes up a large part of the price when building.

If you're building a house there's one component that makes up a large part of the price, and that's the land.

And as much as houses are in demand it's the land and the location of the land that's important for buyers, councils and speculators.

Land prices have increased from a median section price of $94,000 in 2003 to more than $200,000.

With demand rising for new houses and good areas to build, I've had a few people looking for advice on subdivisions where their home is also part of the property.

Each client had specific circumstances, which meant different outcomes and advice.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

The information here is general and subdivisions are tricky not only when looking at council processes but also when it comes to tax so make sure you get some advice on the processes and structure for your circumstances.

You will need to engage your surveyor, lawyer and accountant team in a meeting.

The myth I hear often is the first subdivision is tax free, especially if it has been owned for more than 10 years.

Advertisement
Advertise with NZME.

Where it's a simple subdivision and its only surveyed and pegged then more than likely this could be the case.

However if you're bringing in diggers and major earthworks are involved then it counts as work of a major nature and you'll need to consider the tax consequences.

If you have been doing subdivisions every few years and established a pattern of activity or if you purchased the land for resale then you'll also need to review your tax situation.

Structures are an important part of risk and tax planning when it comes to larger subdivisions.

Discover more

Jeremy Tauri: Good time for an office cleanse

14 Jan 04:00 PM

Jeremy Tauri: A little list can save you a lot of hassle

20 Jan 04:00 PM

Companies are useful but if possible avoid transferring your residence into the company -- a subdivision and subsequent transfer or sale could have a tax liability attached to it where it wasn't expected.

GST is claimable on land that you are looking to subdivide but this is limited to cost, not its market value.

So while you're sitting on the deck this summer pondering the profits of the division of the land make sure you do your planning properly. The impact of tax and GST can throw the costings and benefits of subdividing so make sure you get good advice.

Jeremy Tauri is an associate at Plus Chartered Accountants.

Save

    Share this article

Latest from Business

Premium
Opinion

Opinion: How the world's wealthiest invest beyond traditional markets

08 Jun 04:00 PM
Premium
Rotorua Daily Post

Govt considering 'demolition' for Chateau Tongariro, deemed a ‘fiscal risk’ in Budget 2025

02 Jun 05:00 PM
Premium
Opinion

Opinion: Is the US dollar losing its shine on the global stage?

01 Jun 04:00 PM

Why Cambridge is the new home of future-focused design

sponsored
Advertisement
Advertise with NZME.
Recommended for you
'Tragically high': Youth driver traffic offences down but road death toll remains high
New Zealand

'Tragically high': Youth driver traffic offences down but road death toll remains high

08 Jun 05:00 PM
Late drama! Fox heads to playoff at Canadian Open
Golf

Late drama! Fox heads to playoff at Canadian Open

08 Jun 09:54 PM
Northland farm wins national Māori farming excellence award
Northern Advocate

Northland farm wins national Māori farming excellence award

08 Jun 09:28 PM
NZ Rugby CEO Mark Robinson steps down after six years at helm
Rugby

NZ Rugby CEO Mark Robinson steps down after six years at helm

08 Jun 09:27 PM
NZ Herald comments: The stories open for discussion today
New Zealand

NZ Herald comments: The stories open for discussion today

08 Jun 09:26 PM

Latest from Business

Premium
Opinion: How the world's wealthiest invest beyond traditional markets

Opinion: How the world's wealthiest invest beyond traditional markets

08 Jun 04:00 PM

UBS surveyed 317 family office clients for its 2025 Global Family Office Report.

Premium
Govt considering 'demolition' for Chateau Tongariro, deemed a ‘fiscal risk’ in Budget 2025

Govt considering 'demolition' for Chateau Tongariro, deemed a ‘fiscal risk’ in Budget 2025

02 Jun 05:00 PM
Premium
Opinion: Is the US dollar losing its shine on the global stage?

Opinion: Is the US dollar losing its shine on the global stage?

01 Jun 04:00 PM
Premium
Opinion: Navigating the ups and downs of long-term market investing

Opinion: Navigating the ups and downs of long-term market investing

25 May 04:00 PM
Clean water fuelling Pacific futures
sponsored

Clean water fuelling Pacific futures

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • Rotorua Daily Post e-edition
  • Manage your print subscription
  • Manage your digital subscription
  • Subscribe to Herald Premium
  • Subscribe to the Rotorua Daily Post
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • Rotorua Daily Post
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • What the Actual
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven CarGuide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP
search by queryly Advanced Search