Subdivision Development: Crucial Tips for Choosing Property for Investment

12 January 2019
 Categories: Construction & Contractors, Blog


Subdivision is a logical option to consider if you are thinking about changing your property investment strategies. In general, subdivision is a process which aims to create smaller lots from a large tract of land. This option is favourable because the divided lots are easier to sell, and they can be developed independently to earn more profit. Unfortunately, the process of splitting up a large piece of property is not as straightforward as one would think. You will need to thoroughly plan for the work to avoid complications and maximise earnings. Here are simple guidelines to help you choose a property for your subdivision project.

Consider the Location 

When planning to acquire land for subdivision, you must choose the best location for the property. In simple terms, you should only purchase a piece of land in an area where creating smaller lots will attract buyers. Under ideal circumstances, you should select land in a locale where the population is considerably large. You can also earn a lot by option for a piece of land in a neighbourhood where the population is growing.

Determine the Requirements

There are legal requirements which are set in place in relation to subdividing land. These regulations are intended to prevent the irresponsible development of buildings in different zones. Therefore, you must learn about all the zoning rules which are relevant to the property you would like to purchase. For instance, there are strict regulations on the minimum size of different lots in residential zones. In addition, you will need to consider the requirements for important issues such as property access, drainage and parking.

Think about Money

If you are interested in splitting the land for profit, you must calculate your potential earnings. In simple terms, it is important to think about the cost of acquiring a specific piece of property and subdividing it. Then, you should compare with the profits after the lots are sold. Subdivision can be an expensive undertaking, so you cannot only think about the buying price for a large piece of land. Take into account the costs of professional surveyors, installing utilities and applying for development permits.

Engage a Surveyor

Finally, you should engage an experienced land surveyor to help you evaluate your chosen piece of land. This professional will help you calculate the precise size of the land and determine if it can be split appropriately. The subdivided lot sizes should be legally and financially feasible. In addition, the surveyor can help you create the best development plan for the subdivision.