Hi I am new to property investing and am thinking of subdividing my residential block as my first project. My house is to the front with enough room at the back to subdivide. I am wondering whether it would be a better outcome financially to subdivide the land and have it council approved then sell the block only or whether to subdivide, build and sell the house & land…… any thoughts for a newbie?
Hi Tictactoe,
I have had no experience in subdividing a block of land; however, I have had a couple of mates in Queensland who have done it previously. They wish they had done subdividing the block and just sold off the new parcel of land rather than going to the effort of making it a house and land package.
Regards,
Jason Moore
Property Trader | Boston West Pty Ltd
http://bostonwest.com.au
Email Me | Phone MePrivate money lending opportunities available paying upto 12%, secured by bricks and mortar!
Hi Property Trader
why did they wish they sold land only and not house & land package? was it more expensive / too much hard work building the house?It all depends on whether you can afford to subdivide AND build.
Have you done calculations to show the profit you will make off the land only, compared to profit made with house and land?
Hi tictactoe,
"Hi Property Trader … why did they wish they sold land only and not house & land package? was it more expensive / too much hard work building the house?"
To answer your question, I think it comes down to a dollar return on time investment. Likewise, at the time there was price movement on the market which had an impact on their profitability due to the time delays in building the house in block.
Sorry that it took me a while to answer your question.
Regards,
Jason Moore
Property Trader | Boston West Pty Ltd
http://bostonwest.com.au
Email Me | Phone MePrivate money lending opportunities available paying upto 12%, secured by bricks and mortar!
Maybe the first question is to ask yourself whether you could live with a new neighbour on what was once your land. Consider what might be built there, will it block your views or affect sunlight on your property.
Double check that you really do have enough land to subdivide. If it’s to become a battle-axe block, then sometimes the minimum lot size requirement is actually larger and the lot size may, or may not, take into account the ‘access handle’ (driveway).
Chris
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