Real estate represents one of the most accessible, reliable and effective ways for Australians to invest and build their wealth. From first time investors to seasoned professionals, almost anyone can invest in property and the potential for a serious return on investment is real.
Of course, there is more than one strategy you can employ when you invest in property. The path you choose to go down might depend on anything from the type of property you have to your personal preferences. An option that some people might choose to take is property subdivision, and today we’re going to explore this process, as well as its benefits.
Fast Subdivision Facts
The process of subdivision is simple in theory. You take a large lot of land and divide it into smaller properties, allowing you to use these new properties however you wish.
While there are of benefits to the process – as you will see – it can also be incredibly long, complicated and expensive, especially when tackled incorrectly. This makes having the right professionals on your side an absolute must.
The Professionals and the Process
Subdividing starts with getting approval for your plans. The professionals here are your local council, who will tell you their requirements and approve your subdivision if the right conditions are met.
The next step in the process is formal approval and the professionals involved are surveyors and the Development Assessment Commission (DAC). A licenced surveyor can lodge your plans with the DAC for final approval.
The Land Tax Office will then need a range of legal documents, which is where you turn to a conveyancer. This is one of the most important steps, as we will explain shortly.
After this long and complicated process, your land will be divided. To find out more about the process and the costs click here.
Benefits of Subdivision
- Greater Profits – Subdivision takes one property and turns it into two or more, meaning you have more assets to sell.
On a large enough block in a desirable area, this could be a highly lucrative move. Simply subdivide the land, develop each property and sell them all off.
- Greater Flexibility – Of course, you also have the opportunity to retain some of your land for rental income. Subdividing can give you the best of both worlds, allowing you to sell off one property for immediate profit and use the other for ongoing cash flow.
Selling one of the properties can also give you the capital to expand on the other.
Turn to a Conveyancer
While land surveyors are essential to completing your subdivision, it’s also important to turn to a conveyancer. As we said, the subdivision process can be long, complicated and costly. Much of this has to do with the legal implications and the paperwork surrounding this. Getting these processes right is essential to a fast affordable process.
To maximise the benefits, minimise the risk and get the most out of your property, be sure to contact a conveyancer when you’re ready to subdivide. Conveyancing Centre is Adelaide’s team for all property transactions. Choose our team for a straightforward, stress-free experience.