An introduction to Land Subdivision- Some Tips from RealRenta

Land division is how developers create new allotments and increase the value of their land, by utilising the development potential of their land holding.

The underlying value of a property development is the land, not necessarily the buildings.

You can create new allotments without having to build, which is less risky, less time consuming and much more profitable.

Before you buy property for development, gather all relevant information that affects the property.

This information can be obtained in Council searches that agents obtain when selling a property.

The information will relate to zoning, council rates, contamination issues, any outstanding issues or previous permits issued for development on the property.

Also check the certificate of title, which contains the owner’s details, mortgage details and whether any easements exist for services and utilities.

The most important factor that affects the development potential of your land holding is the planning and zoning.

It is important that you verify what the zoning is for your property with your local council, who will have guidelines which should summarise the key points for consideration, when undertaking a subdivision.

Also, you should undertake market research about previous sales in the area and what is on the market now and analyse, how much similar developments are selling for.

Additionally, you should conduct a feasibility study that will detail your goals and objectives, risks, profit projections and the time required to develop the project.

Appoint a team that consists of a conveyancer, property lawyer, building designer, architect, surveyor, urban planner, engineers and a real estate agent.

Meet with your team before lodging your application and discuss all the issues regarding the development of the site so that you can get on top of everything early.

Once you have completed your development proposal, contact the local Council for a pre-lodgement meeting.

Your proposal should contain your full proposition for the development, including the allotment and its’ size and how it will look once you have divided the property.

You will also need to show the open space areas for existing or new houses, driveways and proposed driveways, existing and new car parks, car ports and undercover car parks.


Need a property loan? Contact us @ propertyloans@realrenta.com


Marlene Liontis
Tuesday, 3 September 2019

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