When you invest in a large piece of land, there are many ways you can profit from it. A good way is to subdivide the land into smaller lots. And by selling or developing these smaller lots, you stand a chance to get bigger profits. Below, we will check out four things you need to keep in mind about land subdivision.

  1. Better Marketing

If you have been having trouble with marketing your land, then subdividing it is the way to move forward. For example, you might have invested in a large piece of land at a prime location in hopes of turning it over to some big mall developers later on. However, if there is no interest from anyone to build a mall at the spot, you can be in a tight position. The best thing you can do will be to subdivide the land into smaller lots and sell it off to people who might be interested in developing individual stores at the place.

  1. Feasibility Studies

Subdividing the land for sale is a risky affair. Theoretically, it might sound good. But if you make an error in calculating the value of land or in other areas, then things can get a bit murky. Instead of profiting from the subdivision, you might end up getting less money from the plots than what you would have received had you sold the entire land as a single lot. So, be sure to hire the best people for the job. This is one area you should not try to ‘save money’. Only the absolute experts in this field have the knowledge to do the correct analysis. And hiring them is a profitable investment, no matter what their cost is.

  1. The Complexity of Large Plots

The complexity of land subdivision is directly related to the size of the land. The larger a land is, the more complicated the subdivision process will be. And if there are many lots in the land where a large network of utilities and other infrastructure have to be built, the subdivision can become even more difficult.  For more information about land subdivision in Perth, check out https://www.visiononeprojects.com.au/blog/how-subdivision-perth

  1. Mind The Restrictions

There are strict restrictions applicable to the subdivision of land. Make sure that you read up on them well before you apply for the subdivision. You will have to look into deed restrictions, neighborhood covenants, ordinances etc.  In addition, you also need to do a professional review of the title to see if there are any clauses in the same that might be opposed to the subdivision of land. Any issue that looks to block out the subdivision of land has to be studied in detail and resolved before you move ahead with the project. And even if you think that you can bypass the restrictions and subdivide the plot, you should not do it. In the long term, the disregard of the land subdivision restrictions can bring you into a tussle with the local authorities which can lead to some serious financial losses.