How to Make a Success of Your Subdivision
Posted on: 10 December 2019
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If you own a large piece of land, then arranging a subdivision to create several smaller parcels of land to sell off for residential housing is often a good idea, but what is involved in that process? Setting up a subdivision can be more complex than you might think. Here are three things that you will need to bear in mind if you want to maximise your returns from the subdivision process.
Understand why subdivision helps
If you want to sell your land, then you could simply sell it on as one piece of land to whoever is interested in buying it. There is nothing wrong with doing that, but you will often get a better return if you break the land into smaller pieces and sell them off individually. It is normally the case that the individual pieces are worth far more than a single piece of land. In addition, it is often far easier to find buyers for smaller pieces of land than it is to find someone prepared to take on the commitment of a large piece of property.
Decide whether the subdivision is feasible
While creating a subdivision could make the land potentially more profitable, that doesn't mean that subdivision is always possible or always a good idea. Getting your subdivision wrong could be a very expensive mistake indeed, so it makes sense to work with an experienced team who will be able to guide you through the process from start to finish.
Work out how many lots you want
The larger the piece of land that you want to divide, the more complex the subdivision process will be. Dividing your land into two or three lots is fairly straightforward, but the more lots, you add the more complicated the subdivision will become. Subdivisions that are not situated on an existing road can be especially complex since they require the creation of roads and other infrastructure as a part of the building process. Don't be afraid to work with experts to create your subdivision. It is better to rely on their experience and end up with a profitable subdivision than to try and work everything out on your own and making a serious mistake that turns the whole venture into an exercise that causes losses.
By working with a professional team that understands the subdivision process, you can ensure that your subdivision will achieve the profitable results you expect. The team will know how to approach every process and how to avoid running afoul of any municipal restrictions that may be in place.