Subdividing land has become one of Australia’s most desirable earners. Why? Because it is a fabulous way to maximise your investment as you can sell the lot when its value goes up, build on the divided lots or sell the block to pay back your debt for the land.
These are all pretty fantastic options when it comes to optimising your investment, but there are a few important steps to take before you divvy up the land.
Your first class building lawyers can help you with the finer details of subidiving, but here are a few tips to get you started so that you know exactly how to go about breaking ground on your land and don’t run into building dispute lawyers service.
- Define your zoning
Before commencing division, you simply must ensure that you are able to divide the land. This includes understanding local building codes and understanding the process so that your local council will streamline the application. In many Aussie councils, building codes vary by the street, so be sure that you know the finite details regarding your street before you go to work on subdividing!
- Know the market
It’s important to know your local area and the property market attributed to it – this means knowing what kind of people would like to purchase – or lease – your subdivided blocks.
Will the people you are looking to sell to want a larger piece of subdivided land? Or, will they be young professionals who are happy to purchase or lease a smaller space whilst they get set up?
Will they be investors? Or will they be looking to live in the home? This will have an impact on the quality of the construction you undertake.
- Are there any potential inhibitors?
There are often factors at play that could influence your ability to subdivide, including:
- Stormwater drainage
- Driveway – would you have to move the current driveway?
- Block size – is the block large enough for your grand plans?
- Easements (parking spaces and shared walkways)
- Encumbrances (type of materials used or maximum dwelling sizes)
- Tree removals
And more! It is therefore important that you are fully aware of your property’s potential inhibitors before you go to work on dividing the property as these could really come back to haunt you in the future…
- Is it worth subdividing?
Sometimes, the price of building brand new houses on a block can outweigh the potential return, especially when you consider rates, water metres, demolition, surveyors, the list goes on…
It’s important to do your maths before subidiving the property as the last thing you want is an average return on a property you spent years and thousands (or millions) of dollars dividing!
- Enlist reputable building lawyers
At the end of the day, construction in Australia is a complex issue and for good reason. The legal and regulatory aspects of construction are in place to help clear up any disagreements through the planning, construction and completion phases.
However, it can be difficult to understand the finer points of construction law in Australia, and this is why it’s important to have trusty lawyers who have your best interests – and the interests of the property – close at heart.
They will help clear up any confusion surrounding council, codes, zoning, potential construction disputes, and the wealth of other issues that can arise throughout this important period of your life, and for this reason they are invaluable to have in your corner!