Questions to Ask Before You Subdivide Your Land
One of the long-term investments you can consider today is to own land. After a while, you can always choose to sell it or develop it to earn more from it. One of the solutions you can consider if you'd like to maximise your returns or add value to the property is land subdivision.
But before you start, there are some aspects you need to consider to make informed choices. This post will be sharing top guidelines to ensure you don't make mistakes when subdividing your land.
Is your land marketable?
If you are subdividing your parcel of land to sell the plots to other developers, you should confirm if the land is marketable. The last thing you want is to subdivide the land only to realise that people aren't interested in setting up their homes or businesses in the area. A good rule of thumb is to do thorough research that outlines what the current property market in your locality is like.
Determine the sizes of plots and layouts that fetch more prospective buyers and a higher rate. Once you know the statistics, you will be more confident that there is a market for lots you intend to create. If you aren't sure if your project makes sense, then you should consult a local expert so they can determine the current value of your land and its appreciation rate.
Will you need the approval to divide the land?
The local government must approve all land subdivision projects before the professionals start the work. The application can either undergo a code or impact assessment. In code assessment, you will have to lodge an application with the local authority, where it may be subjected to a standard assessment procedure.
In impact assessment, the application is sent to the council, but the valuation process will be more complicated — they have to check it against the relevant city codes in your state. Remember both applications will need a public notification which includes paper notice, site signage and sending messages to the neighbours.
How much will the subdivision project cost you?
After knowing the amount, you'll need to ensure your subdivision project is completed successfully can really help you plan accordingly. Unfortunately, there isn't a standard cost for land subdivision as the expenses are determined by factors like the land surveyor fee, location, number of lots you'll create, and local council application fees.
You will also incur more charges if you need to make improvements to boost the marketability of the lots. So talk to your land surveyor and ask for a quotation in advance so you can get the money.