Land division is vital for developers that want to sell their land or invest in property. In the guide below, you will learn a few tips and tricks for land division.
Although some people subdivide land as a way to bequeath their property, most people conduct subdivisions to make a profit. Selling a large parcel of land can be difficult since most buyers are on a budget. Small plots are easy to sell and yield more profit compared to selling large tracts of land. Property developers will conduct subdivisions as a way to raise capital to develop their land. Typically, they will sell one or two plots and develop the rest of their property.
The Risks Of Land Subdivision
The primary risk of any subdivision is failing to recoup your investment. Avoid this risk by conducting some due diligence before the subdivision. Ideally, you should hire an independent land development consultant to help you determine the profitability of the exercise. For instance, he or she should appraise the property and compare its current market value against what you would reap if you sold smaller parcels. Besides, the consultant should advise you what developments you should consider. He or she should also provide a profile of your potential customers.
The Subdivision Process
The subdivision process begins with a preliminary inspection to understand the qualities of the land. This inspection should be a collaborative process between the client, the surveyor and the subdivision contractor. It provides vital details such as if the property is exposed to natural hazards such as flooding, if it is close to water bodies, what its topography and soil structure are like, and if it has existing amenities such as a drainage system and electricity. You will also need local council maps to know the exact dimensions of the plot.
After the inspection, the professionals will help you develop a subdivision map detailing how you intend to subdivide the land. You must follow the local council laws when mapping your plot. For instance, the parcels should meet the size requirements. Make an allocation for roads and utilities such as power and water. For large subdivisions, you are required to allocate space for public amenities and commercial developments. The surveyor will submit this map to the lands department for approval. After approval, the contractor will install infrastructure such as roads, perimeter walls, water, drainage systems and electricity on the property. Local council officials will examine the property before awarding titles for each new plot.
Land subdivision is a lucrative real estate venture. Experienced professionals will help you conduct a market survey, create subdivision maps, develop infrastructure and secure titles for the new plots.Share