Large block? Consider a subdivision
If you own a large block of land and want to increase your wealth, consider a subdivision.
Subdivisions are an excellent way to turn vacant and unused spaces into profitable areas of property.
Even if you don’t sell the properties, you’ll build a strong portfolio for when you retire or have the option of renting them out as another income stream. Before you choose to subdivide, it’s worth understanding the benefits of doing so and how it works.
What is a subdivision and who does it suit?
Subdividing involves taking a block of land that one person owns and building one or more properties on it. There are certain categories of people who stand to benefit the most:
- Those living in sought after areas
- People living close to universities that need more student accommodation
- Individuals living in suburban areas where large blocks and duplexes are likely to sell
- Those who own land in desirable school catchment areas
In short, if the local real estate market indicates that you’ll successfully sell the property you subdivide, it might be worth investigating.
What are the benefits of subdividing your land?
The first and most obvious benefit is the ability to make a profit. Providing you plan your project with an experienced conveyancer, you can build a high-value property and sell it on for a profit. Alternatively, there’s the opportunity to rent and enjoy an ongoing rental yield.
Other scenarios where subdividing works well include:
Building property for family members
If you want a home for your children or an elderly relative to live in, using your own land is convenient.
Creating a block of flats
Areas with a dense population can often benefit from additional living spaces.
Entering the short-term accommodation market
From running a bed and breakfast to offering holiday lets, this option works especially well in areas that tourists frequent.
If your current property doesn’t meet your living requirements but may do so again one day, having another one to live in becomes advantageous.
Whatever your aims are for your subdivision project, it’s wise to discuss their feasibility with a professional conveyancer.
Is a subdivision right for you?
It’s worth noting that a subdivision isn’t for everyone. If you aren’t able to meet the financial outlay, the project could prove stressful.
At Achieve Homes however, we aim to make the subdivision process smoother for our customers with a comprehensive approach that covers all aspects. Our service includes an initial feasibility report, comparable sales results, and initial plans detailing budgets and timelines, as well as the project management and construction from beginning to end.
By using a dedicated service such as the one we provide at Achieve Homes, you bring yourself closer to creating a subdivision that’s valuable and right for your future.
To learn more, contact us.