Subdividing land can be tricky business!
Maybe you are sitting on an oversized block in urban Australia. Or you are considering purchasing an investment set to subdivide and make some money. Like everything in real estate, it pays to do your research – or things may come back to bite you.
When it comes to property conveyancing, there are some key tips when subdividing land that we will look at below:
Get advice first!
You may think that you are a savvy investor with a great opportunity that no one else could see. Most times, you would be right– however, failing to get advice for property subdivision could be a costly mistake!
Don’t try to reinvent the wheel; Speak with experts in property, law and building if necessary and get things going right from the start. Subdividing land is a big deal. To ensure you’re doing all the right things to get the council sign off, you’re going to need to do a lot of research and legwork first.
There is one person who you simply can’t do without when it comes to the process: a competent and qualified conveyancing solicitor. Your conveyancing solicitor understands your rights, responsibilities and potential pitfalls of your purchase and it is essential you have a great legal mind at your fingertips during the process.
Sorry, you can’t do that!
Local governments are funny beasts. What may be ok in one part of the street may not be in another. In some cases, you may not be eligible for a property subdivision in the first place – making it a disastrous investment.
Make sure you understand how both blocks will access their:
This is very important and a consideration that may create a few headaches with the local council.
Are there any hidden fees?
Council may apply unexpected fees that could be hidden and may take your profits away – especially in major capital cities – where ‘contribution fees’ are up to $70,000 are required to cover the infrastructure, required to support the development.
If you simply blaze ahead without some guidance, doing your homework and gaining an understanding of the various government planning regulations, you may hinder your investment potential.
The last thing you need is to take out a loan to buy the land and subdivide, only to find you either can’t subdivide the block or you are going to be hit with up to $70k in fees to subdivide – potentially losing your money before you even start!
There is a lot to subdividing land and it’s important to have expert legal advice on your side to ensure your project is a success. To find out how we can help you, head on over to our property law page or speak with the professional legal team from McClure Law today.