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What You Need to Know About Subdividing Your Property

Last Updated Sep 29, 2010 · Written by Jaclyn Fitzgerald

As the shortage of land increases, more and more people that live in prime residential areas are thinking about subdividing their blocks in order to make some money.  If you’ve ever thought about subdividing, here’s what you need to know.

What is Subdivision?

Subdivision, or subdividing your property, is the process of dividing a single piece of land into two or more pieces that have their own titles.  Each new piece of land will become a separate dwelling.

There are different ways that you can subdivide your block and these include:

  • Battleaxe – where the new property is at the rear of the existing house and has side driveway access

  • Side by side – where both homes can have street frontage

  • Multi unit – a house behind a house, or anything involving more than two homes

Things to Consider When Subdividing

The first thing that you need to do if you are thinking about subdividing your property is to talk to your local council.  This is because the process of subdivision is governed by state planning acts that are then interpreted and put into place by local councils.  You need to find out what rules your specific council has.  For example, most councils have a minimum size that each piece of land can be.  You also need to find out how your property is zoned, what easement regulations there are, what potential restrictions there are and so forth.

If you are thinking about subdividing, it can be extremely beneficial to have a planning consultant or land surveyor to help you.  Such professionals are experienced in subdividing and can work with you and the council to achieve satisfactory outcomes as far as possible.  If your application is successful, you will receive the new certificate of titles and you can then begin the physical process of subdividing.

Subdividing can be a very profitable venture, especially if you have a large block of land in an area that is in high demand.  However, you may be subject to capital gains tax when you are selling the newly subdivided lots so be sure to speak to a tax accountant to see how you may be affected.

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