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The pitfalls of subdividing

1 min read Hotspots

Sam Saggers - Positive Real Estate

samsaggers

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Subdivision's am awesome strategy for people looking to create equity and it's probably one of the tougher forms of recreation of equity in the market place. So finding a property where we can split the block, create a new title, and essentially create value by establishing that new title. So there's plenty of pitfalls when it comes to understanding how to do that, working with council, creating a new development application, connecting the power, creating driveways or egress and ingress into the property can be quite challenging at times. Subdivisions are a great way to to create some money in the marketplace but in average most investors would need an extra $100 000 to create the new title system across the country. So you need to be mindful. Do you have the right budget to get the job done?

 

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RELATED TERMS

Equity
Equity is the difference between the market value of a property and the amount owed to a lender that holds the mortgage or the loanable amount.
Subdivision
Subdivision is the act of dividing land into smaller parcels or lots that are easier to develop and sell.