When you’re planning on going into real estate, then you may want to consider building your own property subdivision, where you can sell various blocks of land to make even more profit. But how does that process go, exactly?
Read on as we show you a beginner’s guide on building a property subdivision!
What Is A Property Subdivision?
Before we get into building your first property subdivision, what is this in the first place?
A property subdivision happens when a big lot of land is divided into two or more lots. It’s a way to gain more profit instead of selling your lot to one person. Through having a property subdivision, you’ll be able to increase the value of your land and utilize its development potential.
But of course, don’t start thinking about all the profit you’ll be making just yet! You’ll have to think about all the other costs you’ll need to consider and the planning as well! We’ll get on to that in the next section.
Here are the first five steps to follow when doing your first property subdivision:
- Gaining Financing and Site Location
Like mentioned, there will be quite a few costs to take note of besides construction. You’ll need to take note of the following property subdivision costs:
- Cost of land (if you don’t own it)
- Holding costs
- Stamp duty
- Legal costs
- Town planning application fee
- Subdivision permit fee
- Any bonds or contributions local councils request
- Land surveyors fees
- Designer and engineer fees
- Arborist and soil test report
- Building permit fees
And that doesn’t include the cost of construction and professional fees for building! So you have to ensure that you have enough saved or get loans from reputable financial institutions to complete the subdivision.
- Zoning and Getting The Appropriate Titles
Now, it’s time to conduct due diligence, which is to search about everything you need to know about your property. You’ll need to go begin zoning, find out council rates, and see if there are any outstanding issues with your property and what needs to be done to fix it. You will also want to do market research to see if it is worth selling properties in that area and at how much it should be.
Planning it out and doing your research is crucial so you have a guideline for your project, keeping track with your goals and avoid losing your way.
- Finding the Right Team
Once you are done with your planning, it’s time to create an effective team of reputable people. I recommend that you do not try to save your money and hire just any “professional.” Through finding someone trusted, you’ll be more assured of gaining development profit.
The usual team includes a:
- Conveyancer
- Property Lawyer
- Building Designer
- Architect
- Surveyor
- Urban Planner
- Engineer
- Real Estate Agent
Yes, these people will charge you professional fees but will also help you out throughout the process, saving you time and money in the long run and avoiding mistakes.
- Analyzing the Site, Design, and the Strategies
Once you have already formed a team, it’s time to analyze your site and see what you can do to make the property subdivision an effective one.
Have your team check out the site and create an overall design and town planning strategy that suits your local council’s requirements and still makes the subdivision sellable. Create the preliminary designs and send it over to your local council for approval. Once everything is approved of, it’s time to start building!
- Building Construction and The Property Subdivision
Last but not the least, it’s time to start construction! Start off by demolishing anything that needs to be removed, as well as creating power provisions and water connections. Then, create a base with termite control and a foundation package to make the ground strong enough to build properties on it. Start constructing homes or buildings on your land according to the design approved by the council and add the finishing touches when done, such as adding furniture, building counters, or even the mailboxes outside houses. And you’re ready to sell!
Wrapping It Up
And there you have it! Building a property subdivision doesn’t need to be all that difficult. As long as you have the knowledge on what property subdivisions are and how to secure the right permits to legally sell, then you won’t have to worry about not making a profit from what you sell.
I hope that this article on doing your first property subdivision helped you out! If you’d like more resources to building one, then visit Expert Planning for more information today.
If you have any questions or would like to share your tips and experiences on building a property subdivision, then comment down below. I would one to shear what you have to think.
