Land division is a great way to earn money in the real estate market. This process allows you to divide a huge block of land into smaller portions. If you opt for this type of investment, you will typically earn more because the total value of the divided lots will be higher. Moreover, smaller blocks are easier to sell and develop. However, oversights in the planning process for the division can make your land less profitable, or your mistakes can cost you approval from your local council. Here are guidelines for avoiding mishaps and promoting great results in land division.
Know the Potential Value
You should calculate the potential value of your land before and after the division. In simple terms, it is not prudent to jump into this form of development without thinking about the financial implications. When assessing the property, you should determine if it will be worth more after the changes. In some locales, larger tracts of residential land are more favoured by the communities than smaller lots. Dividing could make the property less marketable. Also, calculate the total amount of money that you will need to spend on the division process. Make sure that you will not make a loss even if the smaller lots will be worth more.
Think About Legal Issues
It is important to address the legal issues which could influence the success of your land division project. If you do not adhere to the guidelines set for the process, you will not get approval from your council. You should note that the rules for different areas vary, so consult a specialist contractor or the local council for accurate information. There are some critical issues that you should address concerning legal compliance. The minimum lot size is the most important. You should make sure that you can divide your block of land without ending up with a lot which is smaller than the minimum indicated for homes within that zone. Also, you should address other problems like access, lighting and water and sewage utilities.
Design the Planned Lots
Finally, you should design the planned lots for your real estate development project. It is not possible to create new lots by dividing the area arbitrarily. The process requires finesse to ensure that the resulting homes are appealing and attractive to customers. Critical factors must be considered including topography, land shape, natural features and easements. For the best results, you should engage a land division contractor to survey and design the lots.
Hi! My name is Robert. I live in Brisbane with my wife and our two kids. For many years, I have been saving up money so I could build our dream home. I first saw my dream home when I was aged 21. I was on a holiday to the USA and was staying with friends in California. While down on the beach one day, I spotted a lovely mansion house which was high up on the cliffs. I decided that one day, I would like a house like that. Last year, I instructed a team on house builders to begin construction of our new home and I couldn't be happier. I have learnt so much from the experience, I decided to start this blog.