If you are looking to build wealth, real estate investment is often one of the most practical solutions. Almost anyone can invest in property without necessarily needing to spend too much time learning about what's involved. Many of the strategies people use to increase their wealth through property investment are simple in principle. One of these strategies is creating a subdivision.
The idea behind a subdivision is easy to grasp. You purchase one piece of land and then divide it into multiple lots before selling the individual lots or building properties and selling them to new owners. The combined value of the subdivision lots will be far more than the value of a single large piece of land. To achieve success, you should approach the process carefully. The following information can help.
1. Understand why you need help with your subdivision
You might think that creating a subdivision only involves obtaining a map of your land and drawing lines on it to divide up the property. While you will need to create boundaries, the exact position of each of those boundaries will require careful thought and input from numerous agencies. You will need to consider how many subdivisions you can create and decide how each of them will access the public highway. You must also think about how each plot will be supplied with electricity, water and other utilities. Your final plan must satisfy those who will be supplying the services, as well as the new subdivision owners.
2. Learn how to gain approval for your plans
It's a good idea to speak to your local council at the start and find out what conditions they may want to impose on developments like yours. This knowledge can save you time and money since it is less likely that you will need to make extensive changes to your plans later in the process. Bringing a licenced surveyor, with local experience, into your team can be invaluable. The surveyor can prepare your plans and ensure that they are lodged with the Development Assessment Commission (DAC) for final approval. Once the plans are approved, the Land Titles Office will start preparing the relevant paperwork to complete the process.
At any stage of the subdivision process, there is potential for something to go wrong. Why risk losing your profit? Working with experienced professionals is the best way to minimise your risks and maximise your returns.