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How To Subdivide Your Property for Maximum Profit

In recent years, the price of Australian property has skyrocketed. If you’re lucky enough to have a big backyard, your land could be ripe for subdivision. This post outlines how to subdivide your property, and what you need to know to potentially make a profit.

What is a subdivision?

Subdivision means dividing your property into two or more lots. To do this, you could:

- Subdivide your land and sell the new lot for someone else to develop.
- Build a house on the newly-created lot, which you could later sell or rent out.
- Demolish your existing home and build three or four townhouses.

Why subdivide?

Over the past few decades, our overall population has increased, while the size of each family has decreased. This means:

- There’s a shortage of available properties, especially in urban areas.
- A high value is placed on houses – and vacant land – in established areas. It’s even better if you have access to public transport and communal green spaces.
- A big block of land could become potential equity to make a profit.

How does subdivision work?

Before you go any further, there are some key questions to ask:

1. First, work out if a subdivision is possible

To be viable for subdivision, your block of land should:

- Comply with local zoning laws. Check with your local council to see if your property is in an area that allows subdivisions.
- Conform to your local council’s minimum lot size. This varies depending on where you live, but a good rule of thumb is to have at least 700 square metres of usable land.
- Ideally be relatively flat, to reduce the costs of construction and access.
- Have enough space to install another driveway.

2. Call in an expert

Once you’ve done your own assessment, call in an expert. You could speak to a surveyor, certified town planner, or an experienced builder. They can advise you about zoning, overlays, and minimum lot size. Planning overlays identify features of the environment that might be impacted by a new development. In some cases, subdivisions may not be permitted due to protected vegetation, flooding, bushfire risk, or the location of heritage buildings.

3. Apply for planning permission

With the help of your builder or surveyor, it’s time to put together a development proposal. You’ll need to outline how you suggest splitting the land and show plans for a proposed house, driveway, and car parks.

A Final Word

Subdividing your land is a complex endeavour but can be well worth the effort. As Australia’s number 1 rated national home builder, G.J. Gardner Homes has proven project experience coupled with local expertise and can help you through the process.