Developing a subdivision without proper research can be highly detrimental. In simple terms, the subdivision development process can help you increase the value of property and earn more through sale or further development. However, you should keep in mind that not all pieces of land will turn in a good profit. If you begin your subdivision without confirming the suitability of your property, it is possible the earnings might not be as expected. Therefore, it is important to commission a survey before project commencement. In addition, consider these precautions when purchasing property intended for subdivision development.
Consider Ease of Subdivision
When planning for your subdivision, you should ensure that the piece of land will not be difficult to handle. In simple terms, when property is sectioned, there are specific rules which must be followed. For instance, the sizing of each lot must not be smaller than the minimum property area specified by the relevant zoning regulation. If your piece of land has a strange shape or unusual dimensions, it will be difficult to make marketable lots while following the regulations. Therefore, you should opt for properties which are easier to divide such as corner blocks.
Check for Covenants
You should not get ahead of yourself after finding a good piece of land if you are interested in subdivision development. In some cases, all the conditions might be right for a profitable subdivision. However, there might be restrictions placed over that property. If there are restrictions, you will not be allowed to proceed. Therefore, you should not purchase your piece of land before making sure that there are no covenants. Covenants often prevent the landowner from significantly changing their property. Easements can also be restrictive, so you should also avoid such limitations. You should keep in mind that having restrictions extinguished can be difficult and time-consuming because legal action might be necessary. It is best if you choose a different piece of land for investment.
Evaluate Service Connections
When subdividing, you will need to ensure that each property is adequately serviced. This is a critical process of the development. Unfortunately, if the point of connection for the core services is not in a convenient place, you will need to spend more money and time. As a result, the development could become too expensive, compromising your profit margins. Therefore, when choosing property, it is important to check on the local network of services such as electricity and sewers. Make sure that getting connected will be economical.
Learn more about subdivision development from local construction companies.