There is literally 101 things to consider when becoming involved in a land subdivision.
Land subdivision 101
There are literally 101 things to consider when becoming involved in a land division which is the way developers create new allotments. When a developer or land owner creates a new allotment, they increase the value of their land holding by utilizing the development potential of their property. This is referred to as a subdivision, cutting an allotment into two or creating an additional new title. One of the misconceptions surrounding subdivision is that the development of land always requires the construction of a house on the land and that this creates the profit of the development. For many projects, the underlying value of a property development is most often the land not the building. You can create a new allotment by undertaking a land division and then sell the allotment without having to build. This process is less risky, potentially more profitable and less time consuming.
Mitchell Residential can provide a special packaged service “The Block Masters”. This is a program which has been developed over many years in a step by step system. Starting with a working report, management working file & property play book that incorprates all the requirements to complete the project. Complete with management, support, select service providers, co-ordination, controls, communications with contractors, clients.
We have listed the process here to give an overview to caution any DIY subdivider that this excersise needs professional advice & assistance.
Before you buy a property for development, the first step is to undertake due diligence. This is the process of gathering all the relevant information that affects the property. This information is mostly contained in the Council searches that the agent obtains when selling a property.
The search contains a list of all the information that relates to your property such as the zoning, the council rates, if the site is known to be contaminated – that is if there are any outstanding issues affecting the property and any previous permits for development on the property. The other important piece of information you will also need to check is the certificate of title. This document contains all the relevant information that applies to the property such as the owner’s details, if a mortgage is registered on the property and whether there are any easements for services and utilities such as storm water, water, gas electricity.
The most important factor which affects the development potential of your property also possible losses from common mistakes…is avaiable on request 92455553
Appoint your team
One of the mistakes people make when developing their land is that they try to do everything by themselves to save money. This often results to severe which can be very costly. This also leads to a big loss of time which inevitably ends in more interest costs and a loss of development profit. To avoid this problem it is important that from the beginning of the project you identify which professionals you need to help you develop you land.
A typical team will include the following people
Conveyancer & Lawyer
Services & Connections
You should identify your team before you start your project. These people will charge you fees but they help you through the process and save you considerable time and money. Professional developers always have a team of support consultants to help them. No-one knows everything and sometimes as individuals we forget things and this can lead to costly mistakes.
Special Project Manager
[MRES] Mitchell Residential provides Special Project Mangement to all the above which is the answer !
Meet with your team before lodging your application
Before you commence your development proposal you will need to appoint your team. This will include a building designer, surveyor and possibly an urban planner if you have a complicated land division proposal. As previously stated it is better to create a team of professionals so you don’t make mistakes and potentially lose all your profit.
You don’t have to spend a fortune to get good advice. You may only need the urban planner for a couple of hours to provide you with some preliminary advice. This can be worth a lot more to your project than the small amount.
Suggested you have a start up meeting with your team. At this meeting the team raises any issues regarding the development of the site. This way you can get everything out before it’s too late.
Once you have put together your development proposal with your building designer, surveyor and or architect, you should go to your local Council with your preliminary plans and have a pre-lodgement meeting. It is also a good idea to take you urban planner to this meeting.
You will need the following documents to bring to the meeting
A copy of the certificate of title
A plan of the existing property including any houses or sheds located on the property and any other significant features such as large trees
Some councils require you to show how a new dwelling will be sited or positioned on the proposed allotment. (You can verify this when you make you initial inquiry before you purchase the property.)
The following information is generally required for most land division applications
A plan showing what you propose to do. Show the proposed allotment you are going to create and how big it will be. You also need to show how big the existing allotment will be once you divide the property
Show the open space areas for the existing house and any proposed house on the new allotment
Show the existing driveway and any proposed driveway for any proposed / existing dwellings
Show car parks for the existing house and any proposed carports or undercover car parks for the dwelling.
In the pre-lodgement meeting you need to know a few key points that will assist in the process…
for more info  9245 5553
Refine your development proposal and lodge the development application
Now you have identified any potential issues with your proposal you should meet your professional team again and instruct them on what needs to be done and what changes if any have to be made. The team will then make these changes. Now it is time to lodge your development application.
Tracking your application
The time taken to approve a development application varies considerably between different states and different councils. During Step 1 and Step 4 so establishing how long a development application takes to get approved is needed. This is extremely important. Asking the right questions & communications is the key. An indicative time frame is provided, but to know more…. to finalze the overall project & get it done…. Ask Agent  9245 5553
Subdivision is a great way to get ahead and make profit. It is an exciting and diverse area with lots to do and is always challenging. However, it is also risky and highly complex.
So to get started….You should do two things… then ABC
Due diligence and upfront planning – Gather as much information as possible before you buy and develop.
Seek professional help as it doesn’t cost much and it will save you many thousands of dollars.
Join the Sub Club – Be Smart!
* Image used is a private purchase from Davey RE
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