The process of subdividing property for profit may seem relatively easy to most people. All you need to do is purchase a block of land, subdivide it, find buyers, and make money. However, the reality of is often a little different and more complicated than it seems. Besides following the local council rules, various factors determine how suitable a piece of land is and whether it will sell quickly and offer you the desired profit. This article will give you insights on how to choose the ideal piece of property for subdivision if you want to make a profit.
Familiarize yourself with council regulation
Every local council has set rules regarding the subdivision of land for development. Before approaching a seller, it is critical for you to have an understanding of the laws in the area to avoid complications after the purchase. For instance, local councils have guidelines on the minimum land size for subdivision. If this minimum is 500 sqm, you should ensure that your property is sized at 500sqm or more if you want to subdivide it. Some may require you to provide space for building a driveway if you are dividing the land for development. These rules vary from one local council to another; therefore, ensure that you understand them before approaching a property seller.
Find a level piece of land
When purchasing property for subdivision, it is critical to have in mind that the slope of the land can affect the feasibility of the property and the cost of dividing it. Avoid land that is steeply sloped as it may be hard to subdivide. A sloping property may require a retaining wall, and this increases the overall cost of preparing it for sale. Also, buyers who are looking for property for development may not prefer sloped pieces of land as they will incur a huge cost of leveling it. For this reason, you should always choose a level or gently sloping blocks of land.
Consider corner block properties
Corner blocks are attractive pieces of land for development. If possible, consider purchasing such land for subdivision. Corner blocks are highly feasible as you can divide the piece into two units, each with a street front access. Also, the units are flexible in that the seller can have options on where to have their driveway and garage. Corner blocks have a high potential for development, and this increases their market value. They are a feasible option if you want to maximize your subdivision profits.
Contact an experienced contractor for more insight on how to find a suitable property for subdivision and maximize profit.