Do you have a large block of land you could be capitalising on?
Blogger: Cameron Bell, sales and marketing manager, Ross North Group
If you are one of the fortunate ones who own a large block of land, you may be considering ways to capitalise on the value of your property and turn it into a profitable investment. There are various strategies through which you can grow your property investment portfolio, including renovations, buying and selling property, and commercial and residential property investments. One of the most prolific and rewarding property ventures is land subdivision. A successful subdivision is considered to be one of the best ways to take advantage of every part your land, and has the potential to be one the fastest ways to make a profit out of your properties.
Why you should subdivide your land
Many investors consider subdivision to be their investment strategy of choice. It’s a flexible opportunity with a variety of options to suit an investor’s goals, budget and preferences. Some of the benefits of subdivision include:
- The chance to turn one property into many and making a profit from the sale of subdivided blocks of land.
- The option to downsize your bigger block, while you sell or develop the rest of the land.
- Subdivision and property developments can provide future financial security.
- The chance to develop and build new properties to rent or sell.
Types of property developments
Once your property has been subdivided you have the option to develop it further by building new dwellings on the smaller blocks of land , which opens up even more investment opportunities. Depending on the size of your property and municipal R-codes, your subdivided block will allow you the option to build house behind house developments, duplexes, triplexes or multi-unit developments. Once the building process has been completed, you may choose to rent the units out to tenants and make a rental income, sell all the units for a profit, rent some of the units and sell the rest, or live in one of the units while you rent or the other dwellings.
House behind house developments and duplexes are simpler and more affordable property developments that often suit first time or small-scale investors better. Medium to high-density and large scale developments like triplexes and multi-units require a lot of planning, larger investments sums and are more risky, but are very often extremely fruitful investments.
Even though subdivision and property development has proven its success as a fruitful investment over time, it can be a complex project to undertake and does involve a fair bit of risk taking. It is therefore extremely important to do proper research and work with a team of experienced property developers to help ensure the success of your venture.