All you wanted to know about Land Subdivision
A land division is often how new allotments are created. When you create a new allotment, the value of the land holding increases as the development potential of the land also increases. A land subdivision is the process of cutting an allotment into two or more, and creating new titles.
Many people think that subdivision is profitable only if the land is used to construct a house. However, this is not true. In most cases, the underlying value of a property development depends on the land and not the building on it. Hence, it often makes sense to undertake subdivision and sell the allotment without constructing. This can more profitable and less risky. However the decision is up to you.
So, the question is how to go about it? Well, here is a quick look at the steps to a land subdivision.
Exercise due diligence
Before buying a property for development, ample care should be taken to gather all relevant information about the property. Council rates, zoning, outstanding issues, accessibility to utilities such as water, gas and electricity, certificate of title searches, and market research are the few important aspects to be covered in this step. You should also undertake a feasibility study before you take the final plunge.
Gather a team of experts
You may not have the expertise to handle all the details of the subdivision, so gather an expert team to help you. It should include a conveyancer, property lawyer, architect, urban planner, engineer and a real estate agent among others. Your team should be in place before you start the project.
Meet up with the team before sending your proposal
Schedule a meeting with your team and work out the details before you proceed with your application further. Make sure you have covered all the important aspects.
Contact the council once you have readied the development proposal with the help of your core team of experts. You will need to submit copies of certain documents such as the certificate of title, a plan of the existing property, a design of what you intend to do, and the like. Discussion with the council’s urban planner can be very helpful. Most of the councils would ask for a plan showing what you propose to do, including the open space areas and any proposed driveways, car parks etc. If you plan on building, these plans will need to be submitted also.
Refine your development proposal
According to the feedback received from council, take steps to eliminated any potential issues and refine your proposal accordingly. Once you have completed this, you can then lodge the development application.
Track your application
Subdivision might take anything from six months to twelve months. It is important to track your application regularly. You might get an idea of the time span from the council planner during the discussions you had with him. Make a note of it and do frequent follow-ups.
Although you can undertake subdivision on your own, it is always better to seek the help of experts. Either way, you should always exercise caution and conduct thorough research and planning.