Subdividing a property can be a highly lucrative process, but it can also be very overwhelming. Here are some tips to keep in mind during the planning process.
Zoning
Ensure that you check your zoning laws with your local council to ensure that the sub-division is worthwhile to begin with, and so that you can plan your development within the boundaries of your zoning limitations.
Size
Many municipalities require your property to meet a minimum square meterage in order for you to undertake a subdivision project, so it’s imperative to check that your property meets those requirements.
Just like buying, selling and leasing properties, location matters. Thoroughly research the location of the land you’re planning on, as well as your most likely type of buyer for that area.
Function
If you’re unsure of what you’re going to use your subdivide block for, speak to a town planner or project manager, who can help you to understand how to maximise its potential while still abiding by zoning restrictions.
Depending on the type of block you’re subdividing and its location, there will be different costs you should plan for, including utility infrastructure, demolition fees, and land surveyor fees.
Hold or Sell? Knowing from the outset your intentions for your sub-divided block, and whether you’re planning on selling immediately or holding onto it, can influence many of your decisions. Knowing this can help guide your calculations regarding profits, cash flow, and tax implications.