Hi All,
I have a general query in regards to the benefits or disadvantages of subdividing a development before or after completion.
If you purchase a property with the intent to build 2 houses for rental purposes, is it better to subdivide upon completion, or wait until you are ready to sell one or both of the houses say 5 yrs down the track?
More specifically I would like to understand if:
1: Is it harder to subdivide AFTER completion -i.e 5 yrs down the road?
2: Do you save on costs associated with Land tax and council rates etc during the period you do not subdivide as its still on one title?
3: Are there any savings on council contributions?
4: Are there any legal/tax implications doing one or the other?Thank you for your assistance with the above queries.
CheersHi Radracer,
From a town planning perspective it shouldn't be harder to subdivide in the time frame you gave. The only negative I can think of is that when it comes time to subdivide the council will expect the development to look like the approved plans and if there are changes that the council want fixed up it may be more costly to do further down the track. Also if there was a council contribution triggered by the subdivision that was based on a property valuation that could be significantly more expensive the longer you wait to subdivide. I'll leave the other questions to those experienced in those areas.
Regards,
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