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land subdivision





Do you have some land that is literally collecting dust?

Written by Melanie Toye

An alternative to consider in earning money from your vacant land is through land subdivision. With a land title you have the right to subdivide and sell off a piece of your land. This can be very beneficial for owners who own large blocks of land. Although land size can be as little as 600- 800sqm2 (this size may vary), why subdivide? Land is a valuable asset as property developers and home owners search for their dream properties in the right location. If you have available land in prime locations that are already established, people will always be in the want for it.

The reasons why you would choose to subdivide your land could range from acquiring money to staying in the house and subdividing the rest of the land or selling both your house and the land. Whichever the reason, ensure you have done the research and you have spoken to the relevant personnel in terms of loans, land titles and additional expenses. Owning a large piece of land for many decades could really pay off for you down the track. Subdivide the land and then you could use part of that money for a large down payment on your new property or purchase multiple properties to build your financial portfolio.

If selling your subdivided land, you may also want to speak with a tax professional in relation to possible capital gains tax. Generally, land sold will incur capital gains tax in relation to the profit earned, however it is always best to confirm if this relates to your situation.

It would be in your best interest to have the land assessed beforehand to ensure the land is suitable to build on. Although this isn’t always a requirement when selling the land, to avoid possible lengthy future legal disputes and costs, it would be in your best interest to do so beforehand. Land shapes also needed to be taken into account. A square block, for example, is the simplest trade, but a unique shape of land could cost a new owner more money in development (i.e. to hire an architect etc) to design and build within the odd shaped land. This may reduce the number of potential owners interested in viewing your land for sale.

Before selling your land, it is best to seek Council for information, charges and council regulations. Below are just some of the tasks set out to be completed before subdividing your land:

  • Source a planning permit from your local Council. This will be more time friendly than subdividing the land first
  • Gain a certification of the plan of subdivision
  • Receive a Statement of Compliance
  • Contact a builder to ensure proper drainage is made available in the land you want to sell
  • Prepare a survey plan showing reconfiguration