How should you arrange your land subdivision?
Are you planning a property subdivision? It doesn't matter whether you have bought land with the specific intention of creating a subdivision or whether you have suddenly found that some of your land is no longer needed. Whatever your circumstances are, creating a subdivision is often the best use of land that you are no longer using. Here are three ways that a subdivision could be of benefit.
Sell off part of your land
The easiest option available for disposing of excess land is to divide off the part you don't need and to sell it on to someone else who is willing to develop it for you. Acting in this way keeps your costs to a minimum and takes little effort. The downside of this approach is that the value you receive for the land is less than you could gain if you developed the land further.
Create lots for building
When you want to increase the value of the land you are selling, creating multiple subdivisions is a good idea. By having subdivision surveys carried out and obtaining permission for dividing the land in a particular way, you can greatly increase the value of your property. You will need to think bout the number of dwellings that you want to create and how those dwellings will be arranged on the land. Think about not just the size of the lots but how each of those lots will be accessible for the owners and also for all of the services that will need to access the homes. In addition to the dwellings themselves, you will also need to think about whether you will require a common access road to access the homes from the main highway.
Build the homes prior to sale
To maximize the possible return from your land, you could move from gaining permission to build and actually complete all of the properties on the subdivision. Completed homes will also sell for much more than the bare lots, but there are higher costs and risks involved in this approach. When deciding to build you not only have to pay for the surveys and the building costs but you also have to wait for the homes to be sold off individually before you can start to recoup your investment. Using a subdivision in this way can be worthwhile financially, but it is important to understand that this is a long-term approach — not a quick way of making money.