Posted on August 31, 2018
Transferable title rights (TTR’s), or Transferable development rights (TDR’s) are terms you may have heard in passing over the past decade, but not properly understood, or known what value they can add to a property.
What is a transferable title?
Transferable Title Rights (TTR’s) is a right to transfer the residential sub-division potential from one property to another property in the same district. They provide an effective mechanism for rural subdivision in parts of the Auckland and Waikato regions, that would otherwise not be sub-dividable under the Unitary Plan.
What does this look like in real life?
Consider the story of Peter and Mary. Peter owns an area of land near Piha. Peter of Piha is a typical hard-working dairy farmer who has taken over the old family farm. This land has a portion of the property that is rugged and hilly and has proved to be unprofitable for dairy farming. Peter is looking at what he can do to optimise the value of his land.
Unknown to Peter across country on the edge of Franklin, Mary has a house on a 6500m2 section. Mary of Franklin wants to subdivide her property but is told she can’t because her land is zoned urban.
A possible solution for both Peter and Mary lies in Transferable Title Rights. If Peter of Piha can create a transferable title (or multiple titles) on his land, he can sell them to Mary of Franklin who can then use this right to subdivide her property.
How can a Transferable Title Right be generated?
A TTR can be generated for every 5 hectares of native bush and/or every 5,000m2 of wetland that is invested into a conservation title. Some of this conservation land may already naturally exist but is not zoned correctly in a separate title. Marginal land can be fenced off and revegetated into native bush and wetlands. These titles can remain on your property or you can sell them as a TTR to those looking for titles on the fringe of the urban areas.
The TTR subdivision rules apply to rural zonings only, and the rules vary considerably between the various rural zones and from district to district.
TTR’s can only be transferred into certain identified countryside living zones. For example, in Auckland North these include areas such as Wellsford, Warkworth, Matakana, Algies Bay, Puhoi, Helensville, Kaukapakapa, Waimauku, Kumeu-Huapai, Riverhead, Coatesville, Stillwater, Paremoremo, Albany and Runciman.
If you think your land is eligible for creating TTR’s, or if you are looking to purchase a TTR – contact a professional surveying/planning company to help you work through this process. If you are unsure who to contact, Kauri Park can put you in touch with reputable planners and surveyors in your area.
Who does the transferable title benefit?
The TTR benefits both the seller and the buyer. Mary benefits from the TTR because she can now subdivide her property (which she was not able to do before). Even factoring in the cost of the TTR and the cost of subdivision, Mary has significantly increased the value of her property by creating the extra Lot(s).
Peter also benefits from the TTR. His marginal land beforehand was not generating any sustainable income. By creating transferable titles on this land Peter can now sell them for a significantly greater value than he paid to create them, benefiting from more cash in the bank.
Transferable titles are a win-win for both parties!
That’s the story of Peter and Mary.
Ultimately the environment wins and that is a win not just for Peter and Mary but for all of us. As the result of waterways and marginal land restoration our natural resources in NZ are improved.
What is a transferable title worth?
A TTR’s value varies a lot depending on the size and location. The more valuable TTR’s can sell for as much as $200,000 – $220,000 per title. Depending on the size of the property, a person may have several TTR’s in relation to their land.
What is Kauri Parks involvement with TTR’s?
The most common way to gain a TTR on your land is to create indigenous revegetation plantings – this is where Kauri Park can help. Each year KPN supplies and plants tens of thousands of NZ natives for the creation of transferable titles.
A Kauri Park TTR Example
Last year one of the most interesting TTR projects we worked with was located on Moir Hill Rd, Puhoi. Just under 80,000 NZ natives were planted over 46 hectares of rugged hill country, with a view to create 3 TTR’s.
On this site the planting area was too rugged to access by ATV quad bikes. Physically walking each tray of plants into the site was not economical so we ended up hiring a helicopter and flying the plants from their delivery spot into the planting site. A metal cage (fitting 2 of our plant trollies) was custom made, clipped onto the base of the helicopter and transported the plants from the delivery site to the ridgelines.
A large portion of plants used in this project were Manuka. This has multiple benefits, Manuka is a tough and resilient colonising revegetive plant for surviving in such terrain, plus the land will benefit from Manuka honey returns as a value add to the project.