Top Tip’s On Making a Profit by Subdividing
Corner blocks are Hotspots
If you buy a corner block property for the right price, this is like finding gold. The reason is that corner blocks provide easy access for both properties, and it provides street frontage for both properties as well. Remember that if the corner block has guttering and a curb on one side, the council may ask you to complete this on both sides, in order to get an approval for subdivision. A 50-metre kerb including guttering could cost you $30,000, which could potential minimise your profit margin.
Level or gentle sloping properties are the way to go
Before purchasing a property, try to subdivide on blocks that are level, rather than sloping blocks, as it will be cheaper and easier to subdivide. If you decide to subdivide on sloping blocks, it will require you to pay a lot more for extra services, and the council will demand a greater minimum size plot. For example, a minimum size plot for a sloping block may be 400sqm, compared to 300sqm for a level block.
Find a property with a minimum plot of 600sqm
Every council will have their own guidelines on the minimum land size that you are able to subdivide on. But when you look at Melbourne/Victoria as a whole, properties that are larger than 600sqm are normally allowed to subdivide.
Ensuring there is adequate room for a driveway
Most councils will require that the property will have enough space to build a driveway between the bound of the property and the house. Therefore, before you decide to buy a big block of land to subdivide, ensure these is adequate space for a driveway, this will range from 3 – 3.5 metre, comprising of any landscaping.
Ensure that you consult with the local council about zoning. If you plan to build a townhouse or a unit (example project), and make sure that the property is zoned for each of the structures.
If you purchase a block, that has an existing property on it, make sure you get it inspected, to ensure that is has been built properly, in order to keep the cost of constructions to a minimum.
People often have the ambition to subdivide and try to make a huge profit margin, however they do not always have the knowledge to do so. However, Buyers Agents can assist you through this process of finding a property or a block that can be subdivided.