Subdividing a property can be a profitable way of investing in property. However this process does not come without its challenges, with the application process alone potentially taking several months to complete. It is therefore important that you familiarise yourself with how the process of subdividing works. The tips below provide you with a rough guide on how to go about it, starting with:
1. Perform due diligence. It all begins with finding the right property. Before you apply to subdivide a property, you must first look for one that is ideal for this type of set up on things such as zoning, its feasibility for property development, the types of property that often sell in the area, council rates, the presence of easements for services and utilities. Make sure that the property also has no issues that might affect your purchase and eventual ownership of it.
2. Meet with the local Council. Start with an initial meeting with the local Council prior to making an application. It is during this meeting where you will provide the necessary documents for your application, such as the certificate of title, the property’s current plan, and also your proposed development of the area. This stage is important because it will help you determine if your proposed project meets the policies and guidelines of that particular Council when it comes to planning. You may also refer to the website of your state as this may provide you with more information about their guidelines. An example would be the Western Australia Planning Commission (WAPC) website.
3. Lodge an application. Your meeting with the local Council will help you determine whether or not there are issues with your proposal. If there are issues, address these before lodging an application. Again, your state’s website may provide you with more information.
4. Follow up your application. It may take several months before your application is approved. Make sure to follow up on your application regularly. Contact the relevant department in your state for more information on how to track your application.
5. Work with professionals. The entire application process can be tedious and time consuming. You would therefore benefit by working with professionals who can assist you on planning and developing your proposal. Urban planners, architects, surveyors, and solicitors are just some of the professionals you may have to work with. Naturally, their services cost money, but it is but a small investment compared to the potential savings in time and money you will make by doing things right the first time.
6. Seek financing. It is also important that you secure financing well before you start with your subdivision project. This is where a professional mortgage broker can help you. They can do anything from assisting you with the process of applying for a mortgage, following up your loan application, and helping you choose a loan product that is best suited for your requirements.
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Written by Warrick Greaves.