In theory, subdivision sounds pretty simple. You buy a large block of land, split it into two or three blocks and sell it for a profit. But when something sounds this simple, the reality is usually a little different and slightly more complicated.
That’s because when you subdivide a property, you firstly need to get approval from the local council who have their own regulations, which means you will be dealing with different rules and individual challenges.
Getting council approval can be a slow process and there’s no guarantee that it will be approved. However, to avoid wasting time researching a property that may or may not make the grade, it pays to familiarise yourself with the council’s requirements first if you’re planning to subdivide.
In order for a property to be approved for subdivision, it needs to conform to the local town planning council’s minimum lot size. The first requirement pertains to width, the second to overall area and the third requirement is zoning. Subdivisions in some types of zoning are not allowed.
While there are no hard and fast rules when it comes to picking the property that you can subdivide, there are a few things you can use to help you with your research.
The potential rewards of subdividing property can be considerable. The opportunity to create a new property to fulfil the specific demands of the market can bring high financial returns. Such returns can then be reinvested to boost an investment portfolio or allow further property developments.
City Builders are here to assist you in your sub-divide project. Please do not hesitate to contact us with any questions. We are here to help!