In the current property climate, one of the wisest decisions you can make is property investments in large lots which can then be sub-divided into smaller, narrower blocks. Whether you turn a house into a duplex or buy a larger property which can be divided into any number of smaller blocks, you can pretty much rest assured that this option will be as safe as houses.

Subdivision is essentially the process of creating an additional allotment on a property or cutting an existing allotment into two or more. This utilises and capitalises on the development potential of a property, thereby increasing the value of the land.

You can either build homes on each new subdivided allotment or simply sell the smaller lots of land. This is often the preferred option as this process is less risky, more profitable and less tim consuming.

The first step in investing in a property you plan to subdivide is to undertake due diligence. This involves gathering all the relevant information that would affect the property, which can mostly be obtained from council or the agent. The most important things to check are the zoning, council rates, whether it is contaminated, outstanding issues previous permits and its certificate of title.

The crucial factors that impact subdivision are planning and zoning. You need to ensure that subdivision is possible in the area and that it isn’t protected by any covenant or heritage listing. Market research is also vital to acquire a solid knowledge of previous sales in the area and to analyse how much you could resell it for.

You then need to decide whether to attempt to go it alone or employ a professional team to make the process swifter and easier for you. Attempting to build or undergo the processes of subdivision alone often ends up being much more costly in the long run. A typical team would usually consist of: a conveyancer, property lawyer, building designer, architect, surveyor, urban planner and engineer.

Narrow homes are the perfect solution to subdivision as they allow you as the property owner to make better use of the land while still providing everything a future home owner would want.

Another aspect of the property investment that you will of course have to consider is home loans and super funds. The government recently made legislative changes that allow you to purchase property through superannuation. This is a fantastic opportunity for investors to benefit from advantageous tax treatment that’s given to superannuation. Self Managed Superfund Property Investment is a very wise choice for any potential property investors, regardless of whether you are looking to subdivide into narrower blocks or not.

If you are serious about investing in a property, it is a great idea to seek investment consultancy so that you receive professional advice to make the most informed and propitious decisions regarding this very complex and ever-changing yet very rewarding industry. Momentum Wealth can advise you on all your property investment concerns, regardless of your specific concerns or queries. 

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