Subdividing Land: How to Pick Properties for Profit

May 11, 2022
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So, you’re thinking of getting into the whole subdividing land thing, but what is it and how can you succeed at it? Whether you’ve bought some cheap Australian land for sale or inherited a plot that you’re not sure what to do with, you need to know about subdividing land.

The key is looking at a complicated process and uncomplicating it! 

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What is subdividing?

subdividing land

Subdividing land involves taking one plot or tract of land and dividing it into two or more pieces of land. Simple, right?

Subdivisions vary based on the land and the desired outcome. They range in size from a couple of hundred square feet to hundreds of acres. 

To be allowed to subdivide land, you would need permission from your local council or government. Each region has different rules pertaining to the feat.  

Performing a simple subdivision is not always legal depending on where you are. For example, there may be limits set on what is considered enough land to be divided or how much land a person can subdivide.   

Most people choose to divide up their land so that they can sell a portion of it for profit. This way, they can charge people to live on their subdivided land. 

How to subdivide land

subdividing land

How to pick the best properties for profit

When it comes to subdividing land, you’ll want to choose the best property that will make you a well-off profit. This involves heeding the following regulations first.

The most difficult part of the process is having to ask the question, ‘can I subdivide my land?’ Unfortunately, there is a chance the answer comes back negative. 

Getting approval from your local council involves reading up on their regulations, which include information about the minimum lot size pertaining to width, overall area, and zoning. Yes, there are some zoning types that do not allow for subdividing land.   

Access your local council’s town planning scheme, which can typically be found online. Amidst looking into council regulations, you may be wondering, what does STCA mean?  

STCA stands for subject to council approval and this means that there is potential to subdivide, but it needs to be approved by the local council first. By contacting a town planner for further details, you can feel more confident about your subdividing project.  

1. It’s all about size

Firstly, you will want to look out for properties that are at least 700 square metres in size. This is the usual size of a plot of land that is eligible for properties according to rules and regulations. 

If you have a specific question in mind such as, ‘how much land do you need to build 3 townhouses,’ take it to the council and then take it to Google. There are so many variables to consider in order to receive an appropriate answer for your plot of land, region, and circumstance.   

2. How does the driveway situation look?

Next up is assessing the driveway situation. We know, this seems pretty insignificant, but it is actually an essential part of the process. 

Councils will make sure that enough space is allotted between the house exterior and the boundary line for a driveway. This means that whatever plot of land that you’re working with must be larger than the minimum size set in place by your local council.   

3. Meet them at the corner block

subdividing land

Corner block properties are a good place to start your subdivision journey because they are usually the easiest to divide into two or more lots. Plus, facing the street is a perk for tenants!

Many councils tend to require that your lots have kerbs and guttering on both sides, which is something that corner block lots can provide. 

If you decide not to build on a corner block, you may be throwing away more money than necessary. Subdividing land is already a difficult task, so finding ways to minimise the need for a subdivision cost calculator would be a weight off the shoulders.   

4. Inspect the structure

There is always the option to just subdivide land in an existing dwelling. If you want to go down this route, you must ensure that it is well-built. 

Inspecting the property can end up helping you save a lot more than you would spend. Cheque on the foundation to see if it is solid or if there need to be construction costs put into play. 

5. Say no to the slope!

Flat land is typically easier and cheaper when it comes to subdividing land. This is because building on a slope is a lot more difficult to build on. 

The shape of a plot has the potential to affect the required minimum lot size as well. Sloping land tends to make everything a bit trickier.   

subdividing land

6. Zoning rules can be the make or break 

It is important to remember to cheque on your local council’s rules and regulations for subdividing land. Make sure that the kind of building/housing that you are trying to build is being built on property that is zoned for it. 

The process of subdividing land is highly regarded as one of the fastest ways to make money in the property industry. Making sure that you are aligned with the rules and laws depending on your state can make or break your journey.   

Although it may seem like a fun project, enlisting professional help may also be an option to consider. 

Looking for your dream home? 

We can also help you out in that department. Browse our search page to cheque out some amazing listings available right now. But don’t just stop there, download our app to get the full Soho experience. Just remember to shortlist or swipe left on our listings so we can send you others that better match what you’re looking for.

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