{"id":5438,"date":"2017-03-27T00:50:42","date_gmt":"2017-03-26T13:50:42","guid":{"rendered":"http:\/\/www.trc-gorod.ru\/?p=5438"},"modified":"2021-04-12T15:06:36","modified_gmt":"2021-04-12T05:06:36","slug":"how-to-profit-from-subdivision","status":"publish","type":"post","link":"https:\/\/trc-gorod.ru\/how-to-profit-from-subdivision\/","title":{"rendered":"How To Profit From Subdivision"},"content":{"rendered":"
[et_pb_section fb_built=”1″ _builder_version=”4.9.2″ _module_preset=”default”][et_pb_row padding_mobile=”on” column_padding_mobile=”off” custom_padding_last_edited=”on|phone” _builder_version=”3.25″ background_color=”#ffffff” background_size=”initial” background_position=”top_left” background_repeat=”repeat” max_width=”768px” custom_padding=”60px|60px|60px|60px” custom_padding_tablet=”” custom_padding_phone=”40px|20px|40px|20px” make_fullwidth=”off” use_custom_width=”on” width_unit=”on” custom_width_px=”768px”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_post_title categories=”off” comments=”off” disabled_on=”off|off|off” admin_label=”How To Profit From Subdivision ” _builder_version=”3.0.87″ title_text_color=”#00afff” title_font_size=”36px” meta_text_color=”#95989a” background_color=”rgba(255,255,255,0)” parallax=”on” parallax_method=”off” custom_margin=”||40px|” title_font_size_tablet=”” title_font_size_phone=”28px” title_font_size_last_edited=”on|phone” parallax_effect=”on” module_bg_color=”rgba(255,255,255,0)” use_border_color=”off” border_color=”#ffffff” border_style=”solid”][\/et_pb_post_title][et_pb_text admin_label=”Text_B:” _builder_version=”3.27.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]If you\u2019ve been investing for any length of time you likely will have heard that property investing \u201ctakes time\u201d and that you should exercise patience while waiting for capital growth to increase your wealth.<\/span><\/p>\n Although this is true, it\u2019s only partly true.<\/span><\/p>\n Yes, it does take time to make money investing in houses, but you can dramatically reduce that time by forcing value on your investment.<\/span><\/p>\n One of my favourite ways to do this is through subdivision.<\/span><\/p>\n Subdivision is a fantastic way to make money and while it does take a bit more effort than other strategies, the gains you can achieve are well worth the effort.<\/span><\/p>\n To illustrate the benefits of forcing value through subdivision let me share a story with you.<\/span><\/p>\n Recently, my dad wanted to get a better return on his investment than the 3.75% offered by his bank, so he rang me for my advice.<\/span><\/p>\n As you might suspect, I suggested investing in houses as a means to increase his returns. \u00a0I recommended that he purchase a property which he could subdivide and quickly realise a great return.<\/span><\/p>\n So he did just that.<\/span> [\/et_pb_text][et_pb_text admin_label=”Text_B:” _builder_version=”3.27.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]<\/p>\n After strata is completed and all costs accounted for, the price per unit is projected to be about $230,000 each – an increase of $107,000 per unit!<\/span><\/p>\n That means he will gain about half a million in added value! Much better (and faster) than any gains on 3.75% interest, wouldn\u2019t you say?<\/span><\/p>\n Needless to say my father is thrilled with the outcome of his investment.<\/span><\/p>\n While this is fantastic, you don\u2019t have to strata title a development to make money through subdivision. Simply splitting an oversized lot can yield a great return!<\/span><\/p>\n Just ask my mum.<\/span><\/p>\n My mum also wanted my advice, but she was planning to sell.<\/span><\/p>\n Her home in Gladesville in Sydney was becoming unaffordable, and as she was nearing retirement she planned to use the proceeds to fund her lifestyle.<\/span><\/p>\n I told her I\u2019d be happy to help her sell, but when I took a closer look at her property which was situated on a 1012 square meter block, I realised we could do something much better.<\/span><\/p>\n Her lot had been considered a standard size when she purchased it 30 years ago, however by today\u2019s standards, it was quite large.<\/span><\/p>\n Checking with local council we discovered that the minimum block size was 500 square meters.<\/span><\/p>\n As my mum\u2019s house was in the back corner of the block we were able to split the lot, create two separate titles and then sell the vacant half for $1.1 million dollars!<\/span><\/p>\n Now, rather than uprooting herself, my mum can stay in her long time home <\/span>and<\/span><\/i> fund her retirement!<\/span><\/p>\n I am very pleased that my folks were able to achieve such great results from their ventures, but I don\u2019t want you to think that this strategy only works with large sums of money.<\/span><\/p>\n Because it doesn\u2019t.<\/span><\/p>\n I have seen it applied across a wide spectrum of price ranges and in a varied number of markets.<\/span><\/p>\n The other types of subdivision include:<\/span><\/p>\n Availability depends upon location.<\/span><\/p>\n This involves building a structure on land which you have split and then either renting out or selling the property.<\/span><\/p>\n This strategy is both time and capital intensive. It \u00a0requires splitting the land legally and physically.<\/span><\/p>\n The type of subdivision you choose will depend upon the physical characteristics of the property, it\u2019s location and the desires of the local demographic.<\/span> [\/et_pb_text][et_pb_text admin_label=”Text_B:” _builder_version=”3.27.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]<\/p>\n Ask yourself the following questions to quickly spot an opportunity to force value through subdivision:<\/span><\/p>\n <\/p>\n The following considerations comprise just a small portion of issues that will need to be addressed when planning a subdivision:<\/span><\/p>\n <\/p>\n Once you\u2019ve found a prospective property to subdivide and have done all of your due diligence it\u2019s time to prepare your development application.<\/span><\/p>\n This is one of those property investing situations where you\u2019ll need the help of an experienced team of professionals:<\/span><\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text_H3: ” _builder_version=”3.27.4″ header_font=”Open Sans||||” background_size=”initial” background_position=”top_left” background_repeat=”repeat” use_border_color=”off” border_color=”#ffffff” border_style=”solid” saved_tabs=”all”]<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text_B:” _builder_version=”3.27.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]Gather your skilled team and prepare your development application.<\/span><\/p>\n Here\u2019s what you\u2019ll need to do:<\/span><\/p>\n Tip: Informing your neighbours about what\u2019s going on could prove beneficial to relations in the future.<\/span> [\/et_pb_text][et_pb_text admin_label=”Text_B:” _builder_version=”3.27.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” z_index_tablet=”500″ use_border_color=”off”]Before lodging the application, schedule a meeting with the council. Bring your urban planner with you if possible.<\/span><\/p>\n Hopefully, by this point you will have established a rapport with at least one of the council members – a move which may prove helpful in your discussions.<\/span><\/p>\n At the meeting, discuss the plans you have in place to see if they comply with the council\u2019s guidelines. (If you\u2019ve done your research well, this shouldn\u2019t be an issue)<\/span><\/p>\n Finally, remain open to any suggestions council members may have. As they very likely may reside in the area, they have a vested interest in the outcome, so consider your actions accordingly.<\/span><\/p>\n <\/p>\n
\nI helped him find the perfect deal in Mudgee, New South Wales; a two-bedroom, six unit development for $740,000 ($123,000 per unit) which had not been strata titled.<\/span>
\n[\/et_pb_text][et_pb_image src=”https:\/\/www.trc-gorod.ru\/wp-content\/uploads\/2017\/03\/subdivision.jpg” alt=”subdivision” align_tablet=”center” align_last_edited=”on|desktop” admin_label=”Image_384px” _builder_version=”3.23″ animation_style=”slide” animation_direction=”left” animation_duration=”500ms” animation_intensity_slide=”10%” custom_css_main_element=”max-width: 384px;” use_border_color=”off” border_color=”#ffffff” border_style=”solid” animation=”left” sticky=”off” always_center_on_mobile=”on”][\/et_pb_image][et_pb_text admin_label=”Text_H3: ” _builder_version=”3.27.4″ header_font=”Open Sans||||” background_size=”initial” background_position=”top_left” background_repeat=”repeat” use_border_color=”off” border_color=”#ffffff” border_style=”solid” saved_tabs=”all”]<\/p>\nSubdivision Types<\/b><\/h3>\n
Strata subdivision<\/i><\/strong><\/h4>\n
Block subdivision<\/span><\/i><\/h4>\n
Granny flat addition<\/span><\/i><\/h4>\n
Second property<\/span><\/i><\/h4>\n
Raw land<\/span><\/i><\/h4>\n
\n[\/et_pb_text][et_pb_image src=”https:\/\/www.trc-gorod.ru\/wp-content\/uploads\/2017\/03\/strata-subdivision.gif” alt=”strata subdivision” align_tablet=”center” align_last_edited=”on|desktop” admin_label=”Image_384px” _builder_version=”3.23″ animation_style=”slide” animation_direction=”left” animation_duration=”500ms” animation_intensity_slide=”10%” custom_css_main_element=”max-width: 384px;” use_border_color=”off” border_color=”#ffffff” border_style=”solid” animation=”left” sticky=”off” always_center_on_mobile=”on”][\/et_pb_image][et_pb_text admin_label=”Text_H3: ” _builder_version=”3.27.4″ header_font=”Open Sans||||” background_size=”initial” background_position=”top_left” background_repeat=”repeat” use_border_color=”off” border_color=”#ffffff” border_style=”solid” saved_tabs=”all”]<\/p>\nHow To Get Started<\/b><\/h3>\n
What to Look For<\/span><\/i><\/h4>\n
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What To Do<\/span><\/i><\/h4>\n
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Prepare Your Development Application<\/b><\/h3>\n
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\n[\/et_pb_text][et_pb_text admin_label=”Text_H3: ” _builder_version=”3.27.4″ header_font=”Open Sans||||” background_size=”initial” background_position=”top_left” background_repeat=”repeat” use_border_color=”off” border_color=”#ffffff” border_style=”solid” saved_tabs=”all”]<\/p>\nBefore Lodging The DA<\/b><\/h3>\n