Subdivision of land might seem like a great way to free up some capital from your home, but is it right for you? Here are 5 key things to consider before you subdivide.
Check Your Zoning
The first step towards subdividing a property is to understand the zoning requirements that apply to your site. In addition to the Residential Design Codes of Western Australia, most land in Australia is subject to the individual policies of local councils. These set out standards such as minimum lot sizes, and are therefore critical in determining the scope and subdivision potential of your property.
Other factors that can influence whether you are allowed to subdivide your block include any state planning policies, local planning policies, the shape of the block and whether or not an existing home is going to remain or be removed in order to subdivide the land.
Work Out What Land Is Usable
Consider how much of your block is usable, depending on your local planning policies.
Factors that can affect this include the shape of the land and how far away from the boundary any houses or other features like garages, sheds or swimming pools need to be.
Expect The Unexpected
Don’t expect the process to be straightforward. Check if there are any restrictions in place if you do subdivide. The last thing you want is to subdivide and then discover the land isn’t really big enough for another home. Also, when you are crunching your numbers, you also need to factor in a contingency, and put some money aside for unknown or unforeseen costs. This could be tenants moving out of your property if it’s a rental, interest rate rise or project time and cost overruns.
Market demand
Do your research first. Are people looking for smaller lots for houses? Is the site in a premium area, where land is in high demand already, or in an up-and-coming area that people want to move to? What type of people might be interested in purchasing? Are they first home owners, investors or people looking to downsize?
Speak to some local estate agents who can tell you if it would be easy to sell your subdivided block. They can also advise you if it would be better to sell the land on its own or to build a property and sell the house and land.
Find The Right Builder
If you’re planning for subdivision of land and building a new home, you need to make sure you have the right builder on your team. You need to find a local builder who knows the market and has experience in subdivided blocks and builds. They’ll have a good working knowledge of the legislation and policies around subdivision and building and be an asset to your project.
Thinking about subdividing your block? Get in touch with our team at ParkVue Homes today. As one of the leading custom builders in Australia, we’re ready to help you unlock the potential of your block. Contact us today to arrange an obligation free site assessment.