Shared property seminar draws big crowd
A seminar informing people about the options and complexities of shared property ownership attracted a capacity crowd of nearly 200 people on Sunday 3 July at the Mussel Inn.
During the afternoon event, organised by Billy Kerrisk of Ray White Real Estate, Nelson lawyer Steve Webb outlined the different types of land ownership and the snags that each one entailed, while TDC consents planner Laurie Davidson explained the council perspective on planning issues.
Attendees were informed that four basic alternative options existed for land ownership: tenants in common (where everyone owns shares); a trust (where no one owns any shares and decisions are made by appointed trustees); company ownership (which usually has a limited liability structure); and joint individual ownership (which usually reverts to the other owner if one dies).
The point was made that while it was relatively easy to set up any of these options, it could be a lot harder to get out should the need arise, so all needed to be carefully considered.
Attending the seminar was Elizabeth Warren, who owns two hectares of land at Rototai.
“At some stage age I might want to share or subdivide it and I wanted to hear all the variables. The presentation was very up-front and clarified the issues for me—if anything, it was that all the options have snags or pitfalls to them.
“I guess the biggest problem for me was the indefinable question of people and their relationships. It’s always wonderful at the beginning, but as time goes on, financial problems and personality differences begin to appear. Tenants in common sounded good, but you have to be absolutely clear and have everything written down. I learned that private trusts can run for only 80 years, while charitable ones can be forever. I came away thinking the best model for me might be the ‘company’, but then the biggest problem with that is getting money from a bank should you need it.”
Laurie Davidson laid out the TDC planning process plainly for the crowd.
“Golden Bay has a very wide and diverse community, probably broader than any other area in the whole district. but it is better to be up front and obtain the required consent, or you may be wasting your time. It’s best to convey the end result you have in mind, rather than limiting your information to each stage.
“Remember, applications don’t come cheap. Even a very uncomplicated non-notified consent can cost around $900, while a notified one can be $5,000 up front and possibly another $10,000 to $12,000 for the hearing.”
He later explained that all the rural land in the Bay is classified Rural 1, Rural 2, or Rural Residential, with set guidelines applying to each one.
“We don’t have any Rural 3 here—that classification applies to specially developed and serviced rural land between Richmond and Motueka. But we do have some successful communities, four larger ones (Tui, Rainbow Valley, Happy Sam, and Phaedra Trust at Paynes Ford) plus several smaller ones of just a few people. Despite what some would like to see—that TDC adopt an easier model for sharing land—I do believe Golden Bay people already do have quite a few options open to them.”
Billy Kerrisk said she was not that surprised interest in the seminar was so high considering land prices in the Bay had more than doubled in the past 10 years, while wages had not.
“Landowners who brought in the 1970s may be less able to care for their property and not have the cash to maintain, improve or subdivide their land, yet they would love to be able to legally share their property with family, friends or like-minded souls. A lot of them seem to have come to this point at the same time.”
Since the seminar, architectural draughtsman and ex-councillor Andy Clark, of Tukurua, has offered his advice free to people wanting to approach council about second dwellings. People can also go to TDC direct (preferably with a prepared case) with their questions but need an appointment—just the first half hour is free.
Gerard Hindmarsh
