Subdividing Your Land? Here's What You Need To Know

Joel RobinsonJun 17, 20194 min read

For the modern investor, considering different investment strategies will often end up with the question of subdivision. Subdividing land means splitting a large sized block of land or property in two or more properties. This has the potential of you earning twice the profit as you would get for the property if it had stayed singular. While the process of subdivision sounds great on paper, there are many important elements to consider and the possibility of endless frustration if you don’t tread carefully. Here are some tips to navigate around the bureaucratic red tape that is subdivision:Become Acquainted With Zoning Laws Before taking the plunge in subdividing land, read up and research the zoning laws surrounding your property. The somewhat simple process of dividing land can easily be made way more complex with added restrictions from the council. Before buying a block that looks suitable, call the local council to prevent the stress you may easily encounter without adequate planning. Alternatively, you can check out Landchecker. It is a great tool that helps potential buyers quickly find what zone a property is in and whether the space holds any restrictions.

Size Matters Keep in mind the general rule when subdividing land is to have the property a minimum of 700sqm. Before undertaking the development, make sure your block is correctly sized as you will need to factor in requirements set by the council. This could include a suitable driveway that will usually take 2 - 3 meters of space.Consider All Your Costs The process of subdividing land will mean there are thousands of costs you need to be aware. These include developer costs, finance costs, zoning report costs and potentially, demolition costs. Subdivision costs can range from $50,000 upwards, though this is hefty, it will cover your surveyor, town planner, document preparation for council, consultants, council fees, tree levels and the potential of installing new sewer lines or power lines as well as making the sites powered. Having a buffer set aside is the smart way to account for any hidden costs that unexpectedly arise.

Structure If you are planning to subdivide with an existing dwelling, make sure it is structurally sound. This will ensure that you have a good foundation to work with and will reduce the headache of construction costs further into your development.Check For Slopes When shopping around for a block, check the ground level. Building upon a plot that is level will be easier and cheaper as the headache of sloping earth will be eliminated. The shape of your land may also come into play, for example, some councils might stipulate a minimum plot size of 300sqm per dwelling if the block is level, but instead may take 400sqm on a sloping block. If you are working with a sloping plot, that will also require retaining walls, adding additional costs to your construction fees.

It's All About The Location If you want your venture to be as profitable as possible, then the location of your subdivision is key. For your investment to work well, there has to be a high enough level of demand that renters or buyers would be willing to pay for a subdivided property and this can be determined whether or not there are similar subdivided properties nearby. You want to be close to schools, shops, hospitals, amenities and transport, near major employment hubs and within an easy commute to the CBD to make the development extremely attractive to potential candidates.At iBuildNew, we are passionate about providing advice and assistance to anyone building a new home or looking to purchase land. Our team of new home advisors can step you through the process seamlessly. Call us on 1800 184 284

Joel Robinson

Joel Robinson is the Editor in Chief at iBuildNew, where he leads the editorial team and oversees the country's most comprehensive news coverage dedicated to the new home building industry. With more than a decade of experience in residential real estate journalism, Joel brings deep insight into Australia's evolving home building and construction landscape.

Subdividing Your Land? Here's What You Need To Know

Joel Robinson

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