Understanding Property Subdivision

Posted on: 17 October 2018

Whether you are looking for an investment property or just one to make a home in, there are many different and often confusing terms in the property market. A growing number of properties now are also being marketed and sold under the banner of property subdivision; these are called subdivision developments. These subdivision developments are a new breed of property and require a different set of knowledge when considering buying or renting one. 

What Is Property Subdivision?

When a developer or landowner has a large plot of land, they can create new, smaller allotments out of the original plot of land. This is done for a few reasons, but mostly it is done so that the owner can increase the price (because two plots of land are worth more than one) or so that a developer can make one large area into multiple properties and houses. By cutting up the land you are 'subdividing' it, which is where the practice draws its name from.

How Will This Affect Me?

Knowing about any property subdivision is very important, and if you are buying into a subdivision development you should be informed that the land you are buying has been subdivided. All subdivision requests have to go through the local council, which means that it is re-zoned and there may be restrictions on what can and cannot be done on this new property. You should always check with the relevant local council about what your subdivided property is zoned for. You should also check that the property your new subdivision was originally part of did not have any negative chemical elements or other dangerous attributes that subdividing it into new allotments could hide. Before you sign anything, be sure to check all of this and get help from your real estate agent for the paperwork.

What If I Want to Subdivide My Property?

Subdividing your property is a great idea, but you should be wary of the challenges. Firstly, you need to engage a few professionals to get the relevant paperwork and planning started, such as a conveyancer, an architect and a surveyor among others. Secondly, and often most frustratingly, you have to apply through your local council and meet with some of their planning and zoning officials. This can take months, if not longer, and you should know that no development can begin on your new subdivided properties before it is accepted. So, while it is a great idea to make more money out of your property, think of it as a long-term investment, because the upfront cost of hiring all those professionals can be considerable.


How to Construct a House

Hello, my name is Lisa and this is my blog. I live in Perth, Australia and for the past two years, I have been working on my home to improve it. My husband works away a lot, so the upkeep of the family home is completely in my hands. At first, I didn't have a clue what I was doing. Thankfully, my brother works as a contractor and knows about electrical wiring, plumbing and general construction. He gave me some great advice so I decided to start this blog so I could pass on his wisdom to others. I hope you enjoy my blog.

Latest Posts