Should you subdivide your land before you sell?

3 January 2017
 Categories: , Blog


If you're a landowner thinking of selling up, you've probably heard of subdivision. So should you subdivide before you sell, or it it better to pass your land on in one go? If you do decide to subdivide, what work will you need to have done before you can start advertising your new plots? Read on to learn a little more about the process of subdivision and when it might be right for you, as well as how to go about making it happen.

Could subdivision be a great choice for your land?

If you own a reasonably sized portion of land that's ready for development, it can be extremely lucrative to divide it up into multiple plots and sell them to different developers. Smaller plots may be easier to sell, and, as doubling the size of a plot does not usually double its value, it's possible to make a lot of money this way.

What will you need to consider before you start?

There are two main things you should be sure of before deciding to subdivide. One is the land's eligibility: different states have different laws on this, so it's important to check with your local authorities before spending any money and consider seeking legal advice if you're unsure. There will be some requirements your land needs to fulfill regarding size, location and quality, and you're probably going to need to have some work done before your subdivision can be fully processed.

The other major consideration is your property's profit potential. While land in high-value areas can make a lot of money this way, if your land is in an area that is not in great demand, it may be harder and more expensive to go through the process twice. Check local property prices and sale speeds before you make your final decision, and consider seeking advice from developers to find out what your market is most in need of.

How can you make this happen?

It's likely that your land will need some work done before you can subdivide it from a legal perspective. Most territories state that land must be clearly physically split up, using roads or other obvious boundaries, and most developers will find land that has been split in this way a more attractive prospect. Thankfully, there are plenty of contractors specialising in subdivision who can help you decide on the best way to do this in your case: contact your local subdivision contracting firm for more advice.