Property subdivision can be simply defined as dividing one property into two for more added values. This strategy can be common with investors looking to take out instant equity from their asset. Before commencing the building process however, it’s wise to find a good development block through the area’s zoning and determine the minimum and average site area per residence, the maximum plot ratio or percentage of house coverage and the size of your courtyard area. Following this process, you should then begin to engage with a trusted builder to lay out a development plan adhering to rules of the local council.
Factors to Consider With Property Subdivision
1) The Shape and Slope of the Block
The shape and slope of your block can help determine the number of dwellings your property can accommodate. A property’s shape and geography can restrict or reduce its access and usable working area of the land. It’s important when choosing a development block to inspect the land to ensure you avoid unnecessary restrictions and obstacles that could impact your bottom line. Real estate agents will not make allowances when they market your property, which can affect your outcomes financially.
2) Zone, Schedule & Overlay
The State and Local Planning Scheme Zone, Schedule and Overlays that apply to your property can eliminate some properties from the ability to be subdivided as there are some Zones, Schedules and Overlays place subdivision constraints, as well as subdivision restrictions. This information can be obtained by calling the Town Planning department of your local council to enquire about your specific property or by visiting the Department of Sustainability and Environment website.
3) The Number of Dwellings
A survey on the parcel of land can also help determine the number of potential residences. An experienced builder who specialises in the particular area you’re looking to build in can help you conduct the survey and the costs of it will be dependent on the size of the block. A survey is considered an investment into your project as it can potentially save you thousands in lost revenue.
4) Neighbourhood Character, Strategic Planning & Precedent
Your council may have set specific local Neighbourhood Character & Strategic Planning policies in place. If your property is in a good location with schools, shops and in close proximity to transport services, these policies can sometimes favour you. Neighbourhood precedent such as similar developments in the immediate vicinity can also play a big part in making your subdivision application more favourable. Be sure to view any Strategic Planning Policies for your local council at the Planning Schemes Online website, as well as your local council’s website for any additional Neighbourhood Character guidelines or local planning preferences.
5) Sewer Water And Power Lines
The positioning of major services such as sewer, water and power will not pose restrictions however, it can impact your expenses. Sewer and water must have a specific gradient in order for services to continue seamlessly once the homes have been subdivided. If your block does not lean towards the correct gradient, services may not work and can cost multiples of thousands of dollars to make a success. Be sure to do due diligence by seeking local professionals such as a builder and house conveyancing expert to help you through the process.
What Can Go Wrong In Land Subdivision
There can be certain situations where the council may delay or reject a subdivision permit application. This can be due to a number of reasons such as:
- Service connections for one lot encroach on another, meaning an easement will need to be created or a service is to be reinstated.
- Each lot isn’t fully self-sufficient for all required services.
- The designer fails to clearly indicate connection points on plans, causing trades to estimate where services should be connected, so that a clean subdivision is achieved.
- The designer incorrectly places connection points in locations that cause service connections for one lot to cross lot boundaries of another lot.
- Services are installed at incorrectly located connection points.
These outcomes can be severely costly with regards to delays and dollars, so it’s vital that service connections for new dwellings are considered immediately from the start of the initial site layout of the proposed development. Be sure to consult with an experienced residential designer, a residential builder, an engineer and a Melbourne residential conveyancing expert before finalising your site layout. Be sure to go through these professionals to increase your chances of a successfully clean and swift subdivision.