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Three Property Features that Make Subdividing Lucrative

Subdividing land can be a highly-profitable experience – if done correctly. Not all lots are built equal and developing some lots might not yield the type of results one might think in the beginning. However, there are a number of factors that indicate gr

If you own a reasonably sized section, chances are that you have considered subdividing it and selling off the separate titles for profit. And why wouldn’t you? With subdividing one of the most profitable moves you can make as a property owner, the benefits are immensely appealing to all that have the capabilities to do so. 

While not every plot of land will be able to be split into separate titles, those that are able to can expect a great return on investment. While size is a significant factor in determining whether this venture will yield a favourable sum, there are also a number of other property qualities that have an impact on earning potential. These features make subdividing much more simple, streamline the process and result in larger earnings for property developers. 

Here are the three property features that lead to highly-profitable subdivision projects:

1. Land that is Level

Earthwork is a fundamental part of the subdivision process. During the time of construction, navigating uneven terrain and slopes will cause difficulty and prolong this stage. This will likely result in higher costs and longer wait times. Profitability is undeniably impacted by the period under which construction takes place, so there is little doubt about the effect land-type will have on the subdivision. 

2. Potential Street Access to Newly Created Lots

When subdividing, street access is crucial for new properties to be permitted under law. This means that lots that have easy access to roads and the ability to build a driveway without issue. For this reason, properties that are placed on the corner of a street or with easy access to roads are likely to perform better than those that don’t. Profitable subdivisions are generally possible where separating land into two titles is straightforward due to land layout. 

3. Ideal-Sized Land Area

While having an adequate amount of space is definitely required when subdividing, there can be situations in which sections are too large. This occurs when the costs of the due diligence process exceed expectations due to property size. In some cases, oversized lots will not be profitable unless they are separated into several sections rather than just two, or if a more complicated process is taken on to develop the land into complexes or apartment blocks.

Subdividing for Profit 

Subdividing land requires thorough planning and understanding of the entire process to ensure a successful and profitable project. Through a consideration of these factors and the other criteria for subdividing land, a judgement should be possible about whether subdividing may be something worth considering for a section. Prioritising profitability and potential earnings from the get-go should be emphasised, to enable the best results from the venture.