As Western Australia’s property market becomes more competitive, land owners are adopting a new kind of strategy to cash in on their property. Once, backyards were seen as a place to relax and enjoy a family barbecue, but now, it has become the newest gold mine for Australians looking for a way to increase cash flow. Subdivide and conquer, that is the new game plan for developing small properties and it is making people rich.
Land division is one way landowners or developers create new housing allotments. Creating new allotments increase land holdings and property value by giving landowners the opportunity to tap and utilise their property’s development potential.
The unprecedented returns on Perth property investments are swaying more landowners to undertake subdivision projects and cash in. The vibrant performance of the market also created a win-win situation for landowners and developers like triplex builders. Perth and its growing population have reaped the economic benefits from subdivision, and with positive forecasts for 2015, it is expected that subdivision projects will continue to rise.
People contemplating subdividing for a profit need to know some important considerations before undertaking the project.
- Property – not all properties can take full advantage of subdividing. Knowing the size of your property and what can be done with them are two things that will save you from a lot of stress and money. Information about zoning and local town planning policies should be factored in before you start demolishing your home and creating a new allotment.
- Costs – as with any development projects, there are costs involved. Many subdivision applicants are surprised when they find out about contribution fees and their tax obligations. This is the reason it is important to seek professional help and get expert opinion on the matter.
- Professional help – while there is nothing wrong with doing things yourself, there are times when professional help will do you more good and save you more money. Contact a trusted developer and work closely with them if you want your subdivision project to go smoothly.
Subdividing promises lucrative returns when done right. There are risks and pitfalls, but with the right amount of research and professional help, you can turn your property into a worthwhile money making investment.