Do I Have to Subdivide When Building a Second House?
The question about whether you need to subdivide when building a second house or a development is a question that is more and more prominent as more and more Australians are becoming property developers.
Subdivision is required when you wish to title each unit as a separate stand along house. The positives of subdividing the units are that once you subdivide you then can sell a unit or the lot separately.
Should you wish to keep the second home or others you then can re-finance the dwellings and leverage your equity. You do not need to subdivide if you are planning on keep the units, however this means that the units will be under one title and cannot be sold individually.
There are positives and negatives with this strategy of keeping the units on one title and we can discuss these further with you to determine the best strategy for your property and requirements. The one negative that we do stress is that you cannot sell a unit separately and the banks will not allow the same equity leverage compared to a subdivided titled lot.
If you are wondering what is the best strategy for your home, contact our team today and we can work alongside you to make sure you are leveraging and obtaining the best return on investment for you and your property.