How Much Time is Taken For Land Subdivision?

It could be a home on a large block or an invested property can be subdivided into smaller lots; both for title and profits. Timeline is extremely crucial for this big decision since the property’s future is the prime concern. So, planning for the next steps means you will have to first be clear with how long should it take for land subdivision. 

It could be the subdivision process needs a rush, or else it is taking too long, and then a significant amount of cash needs to be borne. In the real estate market, you might even lose crucial opportunities. That is why, having a clear idea of the typical subdivision timeframe is worthy of getting maximum returns on investment. 

In Western Australia, Perth, 9 to 12 months is the average turnaround time for land subdivisions. You would have ample time to comply with all regulatory requirements when one year is allowed in the subdivision. However, a longer time may be taken if the block is irregularly shaped, or the plan is creating lots smaller than the typical R-code zoning. When the plan is subdividing and building, then the builder will be giving a projected timeframe for the overall project. 

In fact, land subdivision is a great investment strategy, but it can be a complex process if you lack the right advice. On the other hand, meeting all the requirements on time means a financially rewarding experience that will deliver higher returns and extract monetary value from the land that was otherwise unused. 

We have already mentioned the block subdividing process takes 9 to 12 months from start to finish. Dealing with the stakeholders in the subdivision process is the most time-consuming procedure. This includes the statutory bodies receiving and processing the subdivision application - 

The actual physical tasks involved in land subdivisions usually take about 1 – 2 months. 

How Long Does the Subdivide Applications Processing Take? 

Each involved statutory body in the subdivision process comprises its own set of rules. It works at its own pace. However, the overall process starting from applications to owning the title takes about 7 to 9 months. This comprises document submission, clearance, and title production. 

How soon should the subdivision be completed post-approval? Developers have a maximum of 3 years from the date of approval to comply with all conditions as set by the local city council. If a longer time is taken than this, then the approval will be null and void. Then you might have to re-apply for legally proceeding with the work. So, the entire subdivision should be planned out and contractors should be sourced before going ahead with the application. It ensures there will be no chance of missing the deadline. 

Who Has the Responsibility To Approve The Subdivision Applications? 

The subdivision process is somewhat different in Western Australia, Perth, compared to other parts of Australia. Land development makes the process different. Subdivision applications are centralized. WPAC submits and approves them. 

In other Australian parts, first, the applications are submitted to the local councils, whereas in Western Australia, and Perth, the local councils are still the stakeholders in the process. Only the WPAC has the final verdict. 

Generally, subdividing a property and selling the new lot earns you a profit that is capital gain. Typically, this profit is subjected to Capital Gains Tax or CGT. It is all eligible income from asset sales. A financial advisor will always advise you on the best way to determine the tax implications of the new investment strategies, along with subdivision.

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