Subdivision – Factors to Consider

--- Brent Wise

--- Brent Wise

It is important when beginning a subdivision to consider the big picture pertaining to your particular circumstances particularly with regard to costs and ultimate profits.

It is critical that you establish the likelihood of the profitability of the venture. This must be considered both in terms of final value of the subdivided property and improved rental yield.

It is preferable to subdivide a property while keeping the existing property, this will end up with a free piece of land that will be worth more than it was before it was subdivided.

You need to weigh up whether the option of going the route of demolition of the existing property will result in excessive costs associated with the demolition and the resulting subdivision might outweigh the improved value when the new dwellings are erected.

Thus it is always important when commencing a subdivision to consider the big picture with factors related to associated costs and ultimate profitability.