Real estate is one of the most common ways that Australians seek to create financial investments. It's a tried and true method that works well if you're looking for solid future gains and relative stability when it comes to growing your nest egg.
There are many ways to make money out of real estate, such as investment properties that you rent out to tenants or buy-and-flip properties that you renovate and then sell to make a profit. Another great way to make money through real estate is by subdividing a suitable block of land.
Subdividing means that you can create two or more separate blocks of land, which you can either sell as vacant lots or develop yourself. Either way, the profits can be quite significant, which is why it's so appealing. However, it isn't a simple process, and it requires a lot of planning and thought.
If you're looking for a real estate investment property that you can subdivide, then here are three vital things to consider.
1. Property Size
In order to subdivide a property, you'll need to make sure that it's large enough to do so. Each regional council has different regulations on how large a property has to be in order to split it, and it's vital that you know the appropriate regulations for your prospective investment before purchasing it.
2. Suitable Access
Another vital thing to consider is how the newly subdivided blocks will be accessed. Each title will require a driveway, and the shape and position of the property may not allow for this if it's a long, thin block or has neighbours on three sides. Ideally, choose a corner block that will give you plenty of options and won't eat into the viable building space of each block.
3. Council Precedents
Getting council approval to subdivide a property is often one of the most difficult parts of the process. Unfortunately, there are no guarantees that your project will be approved, but you can take steps to improve the likelihood.
Look around the neighbourhood where your potential property is located to see how many, if any, other properties have been subdivided. This is a good indicator that the local council views this type of project in a positive light. You can also request to look at the council's historical records to see how many similar projects have been approved and why other projects may have been rejected.
To learn more about land divisions, contact property surveyors in your area.