Hi,
First post here as I have been a lurker for ages. Such a good forum.We have a property we would like to try and subdivide. We could do with a deposit for a house in England as we will be backwards and forwards for a while.
The house is rented and it is the land at the back we would like to try and sell.What is the difference between dual occ. and subdivision and who do we see to take the next step?
Has anyone any dealing like this in the area?
Any help would be much appreciated.
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Your first port of call would be to the local council to see if your land is sub-dividable.
If it is, then you can start the process and sub-divide, but you cant really do anything until you know whether you can or not.Thanks.
I have contacted the council and a surveyor. He says there would be a fee of about 2000 to prepare an application form for dual occ. We would also need house plans to go with this.
Once the building is up and approved then we could subdivide it.Our hopes were to subdivide and sell the house. Build in our own time and be able to take some momney for the u.k
So, is this the only way of doing it? Are we really not able to subdivide without having to build first?
Hi Bessie,
I am also a new forum member and was only interested in replying (first time) as I also have an investment property in Hervey Bay Qld. Difference is I build a duplex on a vacant block of land to maximise the rental return.
You can consider the property “Dual occupancy” as I own the whole property with multiple residences.
The added value in this a) higher income b)land rates stay reasonably the same as it is still only one(1) property c) minimise landscaping which requires maintenance or ongoing care. Detracting feature is you, the owner, must cover the costs of construction of a new house and any borrowing cost(interest) until the property is rented. In your case you may also lose the existing tenant during construction.Dual Occupancy, in my case, was to maximise income to best cover holding costs over a longer time period inorder to (hopefully) realise future capital gain.
Whether you build 1, 2 or more residences on the one title the construction is not a transaction which triggers “Capital Gains” assessment and hence an expense to be paid in the short term.
Subdivision is when you divide the land into small parcels which it is hoped are individually more valuable than the original “whole” land. Sell off the surplus and pocket some money to boot.
This transaction does trigger “capital Gains” assessment and you would be mindful to take independent legal & financial advice as to the ramifications.
In both cases you hope to achieve the desired result “money for other purposes” only after paying for ALL COSTS.
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