Every time anyone goes in an out of our bathroom at night I can hear it because the bathroom door squeaks. I've asked by husband to fix it so many times that I am sick of the sound of my voice. I am getting a contractor to fix the job and do all of the other jobs on my husband's to do list. I am sick of nagging him, so I'm hiring in someone to get rid of all of these little issues. This blog is for other fed up wives who just want to see their houses fixed like they asked.
Subdividing land for construction can be a lucrative venture if you're focused on reaping meaningful value from your investment. However, a land subdivision is not as simple as splitting your property into lots and selling each to make a profit. The concept behind it is far too complicated. There are considerable risks and requirements to consider before committing to a project. Before plunging deeper into subdivision construction, consider these four crucial factors:
Compliance With Zoning Requirements
Your foremost step towards property subdivision is understanding your area's zoning requirements. Various set standards like minimum lot sizes are vital in determining your property's subdivision potential and scope. Any property in Australia is subject to individual local council policies and construction codes. Furthermore, these policies may vary significantly between different councils, and this can dramatically affect your property's development potential.
What's the Current Demand for the Subdivision?
Never assume that all property subdivisions always yield profits. Before initiating subdivision, it's essential to research your local market to find out whether there is adequate demand for the project you're planning. For example, if the market has an overabundance of duplex homes, reconsider your subdivision plans. Conduct comprehensive research on top-selling investments locally, and make a comparison with similar businesses to gauge the expected profit margin.
Possible Restrictions That Can Affect Subdivision
During the planning phase, carry out a feasibility analysis to determine any potential issues that can affect your subdivision construction. This analysis can assist you to pinpoint items that can impact your future subdivision efforts, including the presence of sewerage systems that impedes development in a site. Besides, check whether your property is subject to certain site-specific restrictions that prevent subdivision. For example, when located in a bushfire-prone area, specifications that dictate how you develop the property may change.
Council Contributions and Head Works
When planning your subdivision construction, there are many aspects such as construction costs, permits, planning application fees and other extra costs to consider. For instance, subdividing the property into multiple residential units, water and power companies must upgrade current infrastructure to support growing demand. As a developer, you must deal with such upgrade costs. Furthermore, your local council may demand a development contribution to cater for increased demand for amenities and infrastructure per every new additional unit.
Subdivision construction can be a highly profitable investment when you follow the right approach and planning. However, it's highly risky if you don't invest in the time and expertise needed for the project. Consider the four factors discussed above if you're planning a successful subdivision construction project.Share
19 February 2020