Can You Build a Home and Income Property with Two Small Units in Queenstown Lakes District?
Nat is based in Lake Hawea and is exploring whether it is possible to build a home and income property with two small residential units on the same site. Here's what needs to be considered.
Nat is asking:
"Looking at building a home and income consisting of a 1 bedroom (30 m²) and 2 bedroom (60 m²) units."
Location: Lake Hawea, Queenstown Lakes District
Nat is based in Lake Hawea, within the Queenstown Lakes District, and is exploring whether it is possible to develop a home and income property consisting of two small residential units on the same site. This is a very common question in areas experiencing strong housing demand like Queenstown Lakes.
Quick Answer
In many situations it is possible to build more than one dwelling on a property, but this depends heavily on the zoning rules, site size, planning restrictions, and private covenants affecting the land. In most cases:
It is also important to understand that recent proposed changes to the granny flat rules in New Zealand generally allow only one small secondary dwelling per site, which can influence how a project like this is designed.
Understanding the Scenario
Projects like the one Nat is considering are often referred to as home and income developments, where a property contains a main dwelling and a secondary dwelling used for rental income or family accommodation.
In this case, the proposal is to build:
Before moving forward with a design, several planning and regulatory factors must be reviewed to determine whether this type of development is feasible.
What Needs to Be Checked First
Several important aspects must be reviewed before confirming whether two units can be built on the same property.
Zoning Rules
The zoning of the property under the Queenstown Lakes District Plan will determine:
- How many dwellings are permitted on the site
- Minimum site sizes per dwelling
- Building setbacks from boundaries
- Maximum building coverage
Site Size and Density Limits
Local planning rules often limit the number of dwellings allowed on a property based on the size of the land:
- A minimum site size per dwelling
- A maximum number of residential units
- Limits on total building coverage
Exceeding density limits?
If the proposed development exceeds these limits, resource consent may be required which adds time and cost to the process.
Infrastructure Connections
Each dwelling generally needs access to essential services:
- Wastewater drainage
- Stormwater drainage
- Potable water supply
- Electricity and telecommunications
In rural or semi-rural areas like Lake Hawea, the availability and capacity of infrastructure services can influence the type of development allowed.
Parking Requirements
Local planning rules often require off-street parking spaces per dwelling:
- One parking space for a small one-bedroom unit
- One or two spaces for larger dwellings
Consents That May Be Required
Building Consent
A building consent is required for most new residential construction in New Zealand. This ensures compliance with the Building Code, including:
- Structural safety
- Insulation and energy efficiency
- Plumbing and drainage
- Fire safety
- Weather tightness
Resource Consent (Sometimes Required)
A resource consent may be required if the development does not fully comply with planning rules:
- Exceeding density limits
- Insufficient parking spaces
- Building height restrictions
- Reduced setbacks from boundaries
Professionals Typically Involved
Developments like this usually involve several professionals:
Design layout, prepare drawings, coordinate consent
Structural calculations and foundation design
Resource consent applications if planning approval needed
Site measurements and subdivision documentation
Typical Costs for a Project Like This
Preparation costs can vary depending on site conditions and design complexity:
| Item | Estimated Cost |
|---|---|
| Architectural drawings and design | $3,000 - $10,000+ |
| Structural engineering | $3,000 - $10,000+ |
| Council consent fees | $3,000 - $10,000+ |
These figures are approximate and can vary depending on the project requirements.
Typical Timeline
A typical process for a project like this:
Review zoning rules and site constraints
Initial design for the units
Preparation of drawings for consent
Council reviews the application
Professional Insight
Based on experience reviewing similar projects, there are a few important factors that should also be considered.
Only One Granny Flat May Be Allowed
Recent proposed changes to the building consent exemption rules in New Zealand generally allow only one small granny flat per property. This means that while adding a secondary dwelling may be possible, building multiple small granny flats on the same site may not be permitted under the exemption pathway.
Check for Private Covenants
Many newer residential developments have covenants that may restrict the number of dwellings, minimum building sizes, whether secondary dwellings are allowed, and architectural design requirements. In some cases, covenants can prevent the construction of granny flats altogether.
Alternative Option: Granny Flat + Sleepout
In some situations, a property may allow:
However, whether this is possible depends on zoning rules, council requirements, and any private covenants affecting the property.
Situations Where This May Not Be Allowed
While many properties can support additional dwellings, there are situations where a development like this may not be possible:
- Zoning that limits the number of dwellings
- Insufficient site area
- Infrastructure capacity limitations
- Flood or hazard overlays
- Restrictive private covenants
Because of this, a site-specific feasibility review is strongly recommended before starting the design process.
Practical Advice Before Starting
If you are considering building additional units on your property, the best first step is to review the planning rules and any covenants affecting your land.
A feasibility review can help determine:
Understanding these factors early can help avoid costly design changes or delays later in the process.