How to get the most out of subdividing properties

Subdividing is a complex game and can be tricky for property investors with limited experience in property development. Here’s some crucial advice to consider before committing to a subdivision.

If you’re looking to develop a property, it is best to find someone who is both qualified and experienced, according to professional developers.

Developers who have done it many times before know what to look for and also have “contacts in the industry” or their own team on their books, which will be of the highest benefit to investors.

The more carpenters, plumbers, electricians, tradies that you know and have in your contacts, will really helps when you move forwards to pricing things.

Investing in sizeable land

Minimum lot size and frontage vary depending on the kind of build an investor aims to erect, and it’s critical to ensure there is enough space before construction of any sort commences.

Typically, a minimum of 600 square meters block of land is recommended broadly to accommodate side-by-side duplex builds and the frontage for a property split should be a minimum of 12 to 14 metres.

Regardless of how much information is spread across the net, consulting a qualified town planner is highly recommended for investors to ensure the individual needs and requirements on their property are met.

Ideal properties for subdividing

Unlike a professional developer, mum and dad investors normally aim for flat blocks or corner blocks when considering subdivisions on their property journey.

Compatible blocks for subdivisions are generally flat sites [where] you can retain things, but again that’s just something that’s a part of the feasibility study when professionals do the costings on the project. Stormwater planning is also critical and should be discussed with your town planner and local council.

You should also find out from your local council about services to the block. Practical things like water, sewer and power should have access to the block – these services will affect future developments in the area.

What to avoid

A lot of investors fail to split properties adequately or efficiently and end up running into self-induced pitfalls as a result.

Knowing all of the things that could really affect the value of that site, such as flood impact, council plans, overlays, services will affect the cost, marketability and profitability of your subdivision project.

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This article via Smart Property Investment does not constitute advice; readers should seek independent and personalised counsel from a trusted adviser that specialises in property, a tax accountant and property design specialist.