Land division is how developers create new allotments and increase the value of their land, by utilising the development potential of their land holding.
The underlying value of a property development is the land,
not necessarily the buildings.
You can create new allotments without having to build, which
is less risky, less time consuming and much more profitable.
Before you buy property for development, gather all relevant
information that affects the property.
This information can be obtained in Council searches that
agents obtain when selling a property.
The information will relate to zoning, council rates,
contamination issues, any outstanding issues or previous permits issued for
development on the property.
Also check the certificate of title, which contains the
owner’s details, mortgage details and whether any easements exist for services
and utilities.
The most important
factor that affects the development potential of your land holding is the
planning and zoning.
It is important that you verify what the zoning is for your
property with your local council, who will have guidelines which should
summarise the key points for consideration, when undertaking a subdivision.
Also, you should undertake market research about previous
sales in the area and what is on the market now and analyse, how much similar
developments are selling for.
Additionally, you should conduct a feasibility study that
will detail your goals and objectives, risks, profit projections and the time
required to develop the project.
Appoint a team that consists of a conveyancer, property
lawyer, building designer, architect, surveyor, urban planner, engineers and a
real estate agent.
Meet with your team before lodging your application and
discuss all the issues regarding the development of the site so that you can
get on top of everything early.
Once you have completed your development proposal, contact
the local Council for a pre-lodgement meeting.
Your proposal should contain your full proposition for the
development, including the allotment and its’ size and how it will look once
you have divided the property.
You will also need to show the open space areas for existing
or new houses, driveways and proposed driveways, existing and new car parks,
car ports and undercover car parks.
Need a property loan? Contact us
@ propertyloans@realrenta.com
Marlene Liontis
Tuesday, 3 September 2019
