How To Subdivide Property

What is Subdivision?

When you subdivide a block of land, it means you're splitting one big piece of land into two or more smaller pieces. Each smaller piece gets its title, showing who owns it.

A basic subdivision would include dividing a smaller block once - typically in a subdivision for residential use - to allow for the construction of another property behind or in front of the initial home. In the case of numerous titles, you are most likely dealing with a bigger piece of land that requires to be divided up, implying a development problem.

Subdivision involves splitting your property into multiple parcels. This can be accomplished by:

1. Dividing your land and offering the new lot for sale to another party for development purposes.
2. Constructing a dwelling on the newly created lot, with the option to sell it or lease it out in the future.
3. Removing your current residence and erecting three or four townhouses on the land.

Why Subdivide?

In recent decades, the population has grown while family sizes have shrunk. This has led to:

1. Increased demand for houses and undeveloped land in established neighborhoods, particularly those with access to public transportation and parks.
2. A scarcity of available properties, particularly in cities.
3. Large plots of land become valuable assets that could be used to generate profits.

Advantages of Subdividing

1. Splitting your land into smaller parts might increase your equity. If each piece of land has a higher individual value, your overall worth could go up. The amount of added value can vary based on location, the size of the new plots, and whether you choose to construct anything on them.
2. You don't have to sell the new house and land package right away; instead, you could choose to move into it and sell your current home. This way, you don't have to relocate far, and you can select your new neighbor. Plus, you'll have a brand-new house that can be customized to your desired size.
3. You don't have to sell the new land or house right away. Instead, you have the option to hold onto it for future use or rent it out to tenants for additional income without much active involvement.

How To Subdivide Property

1. Request Your Permit

Before submitting your request, you should employ an expert to build a house that will fit on the imaginary block. This is normally required to be supplied with your application and will have an impact on some of the permission conditions.

The reason for this could be to make sure that the land is large enough to accommodate a good-sized house. This way, you will only end up with a single piece of land that's too small to construct a house on. You must first apply to your local government.

2. Approval Or Denial of The Permit

Your application will be approved or denied by the council or governmental agency. If denied, you're still in luck. But if it's approved, you'll get a development permit.

It will include a timeframe for when the development must be finished and a list of rules the development must follow.

3. Construction Begins

Any building or civil activity on the land must adhere to the criteria of the permission.

One example of necessary work could involve expanding the sewage or water supply systems to ensure that the new property being constructed can easily connect to these services. The new plot must have all services provided, such as access to electricity, water, sewage, and any other essential utilities like NBN.

4. A Licensed Surveyor Arrives

When all the construction on the property is finished, you'll need a professional surveyor to create and approve the latest survey plan (SP).

The SP occurs in the search for titles to identify the new block. The land surveyor may additionally apply to the applicable council or regulatory body seeking plan sealing (final division approval).

5. Achievement

If the governing body feels confident that you have completed all the subdivision's requirements, the updated survey plan will be approved and sealed. They will grant a new land title that includes the updated SP and title reference number.

You should also receive a statement of compliance, which states that you finished the subdivision in accordance with the permit requirements. Then, bang, you're the legal owner of two parcels of land.

Conclusion

Subdividing property means breaking a big piece of land into smaller parts, each with its title. This can help increase value and make money. You need permission, follow rules, and get help from experts. Once done, each part gets its title.