How Can You Find the Properties for Subdividing To Earn A Profit?

A property subdivision for the investors is potentially increasing their returns on investment. Hence, to avoid unwanted risks, detailed research, a careful strategy and guidance from the subdivision surveyors are way too important. 

 

A subdivision means dividing land or a building into two or more properties, still before, as an investor you have pursued this approach, you need to win several logistical challenges. You will need the approval of the local council under the supervision of the subdivision surveyors whom you have consult hiring from the reputed subdivision and surveying firm in Perth, before development. Each local council is having its own regulations in their place. 

Typically, a minimum 20% deposit needs to be made for getting finance for the development project, even for funds for covering the stamp duty costs and more other buying costs. So, to determine whether the subdivision is worthwhile, especially when related to finding properties for subdividing for a profit, you need to be acquainted with the subdivision types, property types suitable for subdivision and factors involved in finding a property for subdividing.

Typically, residential subdivisions comprise of land parcel splitting, that is the land lot, into one or more lots parts. Subdivisions can be either Torrens, Strata or Community Titled. It refers to the owner of the land's freehold and its management way.

Torrens Title is preferred when the shared or common areas are nil. The land’s freehold will be belonging to the property’s owner, with the Torrens Title, and they have the responsibility towards its upkeep.

Community and Strata Title are favoured with the existence of common areas. For instance, in the shared areas of units and townhouses, like hallways, driveways, gardens and parking lots. Strata Titles are designed for enabling efficient area management and maintenance.

 

Subdivisions examples include a project where the existing home is retained, with an additional dwelling is constructed either behind or beside it. A prevailing house, alternatively, could be demolished for making way for the units, townhouses or duplex. The decision on what will be most profitable is determined by the factors like what will the local authority allow, and what will the local buyers and renters demand. 

Subdivisions have several options. The ideal strategy is buying a single dwelling on the larger than the average size block for the local area. As stipulated by the local authority, each suburb is having minimum lot sizes, and subdivision is the option for the large existing lot. Local authority zoning must be considered as different zones allow different development types. 

Along with the larger blocks, the corner blocks might be desirable since they negate a driveway’s need for accessing a property that is located behind the street-front property, thereby allowing more land for being developed. It further provides greater street frontage. The street frontage homes hold a price premium and result in a better valuable property.

Level blocks without any trees simplify the construction costs, just as the considerations for storm-water management. Properties located on the street's higher side are typically cheaper to drain compared to the ones on the lower side. It is because storm-water retention tanks should be built on the lower side properties that significantly incur an additional cost. 

In property selection, the impediments to the subdivision have to be identified like powerlines, easements, pedestrian crossings, bus stops, restrictive covenants and overshadowing neighbours. These form the restrictions on using the property. 

Now to find the subdivision opportunities, you need to work with the area expert and subdivision surveyor. There are different lot size guidelines for each suburb and policy for development is different for each authority.  Professional help is necessary on property investment in the specialist area. 

From the area experts and subdivision surveyor, you have to understand the local area, the local authority’s development policies and even the local demographics.

At the same time, you will even need inputs from the town planners, engineers, architects and property lawyers. For achieving the best possible results, you need to build up a superb support team. 

Check out the subdivision properties in the growth areas. In these growth areas, the local authorities are likely to be more sympathetic towards the increased dwelling density since they need many homes. The property is even likely to benefit from stronger capital growth as well as the subdivided site, while the new dwellings even perform well. You will benefit from both suburb growth and even subdivision. 

Report this Page