The ABC’s Of Subdividing

For many of us subdividing means nothing. In actual fact, it affects most of the world’s population. The term subdividing, in relation to property means the process of dividing a plot of land in to several parts so that many different residential plots can be created. This is a fantastic way of increasing the value of a property. The reason why subdividing increases the value is because one large plot is a lot harder to sell than a plot which has been subdivided into several smaller plots as these can be sold separately. We will provide you with some hints and tips as to whether you should subdivide and if so how you should go about it.

Should you Subdivide?

You know what subdivision is but is it something that you should do? Consider these points first. Now that you are in a position of wanting to subdivide some land you need to make sure that you have thoroughly looked at the risks involved. For example, you need to make sure that the land is allowed to be subdivided as not all land is eligible, so ensure that you are not wasting time and money on something that cannot be done. If you have under an acre of land, this is relatively easy to subdivide into two plots. With plots over an acre there can be more difficulties. The reason for this is that if you try to subdivide a plot into more than two dwellings you may cause an impact on the roads and the local infrastructure. This then means that the whole process is more complicated.

Research Thoroughly

It is important that you check for any restrictions that may be in place in the area. You can get information about this from a local real estate agent or lender. It is important that these checks are carried out otherwise your plans could be blocked if you haven’t identified any restrictions.

Another factor to consider when considering subdivision is the market. You need to be able to sell the subdivided plots at a price that suits the area. As above you need to consult with local estate agents and perhaps even check with local residents and builders that have worked in the area in the past. Understanding your location is the best advice that you need to take on as no two plots are the same. An example of this, if you have subdivided your plot to accommodate large, luxury family homes, but the land that you have subdivided sits in an area where the properties are smaller and more affordable. Your properties may struggle to sell as there is not a market for them in the location that they are in. The same can be said in reverse, there is no point in trying to sell smaller plots at a premium in an area where the properties are larger and more expensive.

Once you have subdivided your land you now need to decide on what level of service you will be offering to your purchasers. Are you going to maintain the common areas or will this be down to the residents? Before any construction takes place, it may be worth having portable water storage tanks, a lighting arrestor, a surge arrester as well as access to temporary restroom facilities for potential purchasers. It is also worth contacting a residential electrical services company who can provide you with information on how to get electricity to the land, as well as how the change in weather conditions can affect what products and equipment you will require. Additionally, you need to contact sewerage, utility and water companies to ensure that these services can be provided and how to go about it.

Getting your Subdivided Land Approved

  1. It’s important that you begin with a title search to make sure that there are no outstanding, debts, taxes or loans outstanding on the land. If you are already the owner of the land, the chances are this will have already have been checked but its still worth bearing in mind.
  2. It is also worth contacting your local town planning department to make sure that your land can legally be subdivided. In some case you may just need to make a quick phone call.
  3. Although it may seem straightforward to simply divide your land equally, it is advisable to employ a civil engineer to assist you with the division. Civil engineers have access to land surveyors who have experience in this area. They will also be able to assess roads and the basic infrastructure. Additionally, they can advise you on the number of properties that can fit on the land in question as you will need to show consideration for the local environment e.g. doctors, schools and the transport network etc.
  4. Getting the land properly surveyed will help you to subdivide your land with ease as good planning is the key in eliminating potential problems. Once all of the above have been completed, you are now ready to submit your application for subdivision.
  5. Finally, you are ready to submit an application to your local council. The usual process that takes place begins with a number of meetings to decide on whether you will be granted permission or not. If the land is particularly large or complicated, the hearing will be held in public so that the general public are able to offer their opinion on your plans. If all the necessary requirements have been reached, permission is usually granted.

If you follow these procedures that we have outlined for you, you will have a greater chance of success when it comes to being successful in subdividing your property. Good luck!

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