A common question asked is - 'Can I subdivide a property under the Low Rise Housing Diversity Code'?
The first thing that springs to mind when one hears of 'subdividing land' is the divisions that we see in the suburbs.
Usually, land developers take a tract of land and split them up to make numerous homes. But, these large scale subdivisions might turn out to be quite expensive if they're done incorrectly.
On the upside, if done right, they add immense value to the land.
Even if investors look for a creative way to add value, subdividing a small part of land might go a long way. However, before you set out to subdivide the land that you can rent, sell, or build on, there are certain things to be kept in mind.
Today, we have a host of requirements and suggestions that can help streamline the process for you.
So, let us dive into them without any further delay.
Before jumping into the thick of things, many of you might be wondering why the need to subdivide land arises at all. Basically, it is more profitable for the landowner and offers greater flexibility when it comes to the return on investment.
Those who have purchased large tracts of land might consider this as a viable option to maximize resources.
More lots ultimately result in more money because the land can be sold to multiple buyers. Several owners choose to keep small portions for themselves too.
Once the land is subdivided, you'll notice it is easier to find buyers as well, who don't want the effort, risk, or time involved in buying a larger tract of land.
Before you start with a subdivision, you should consult a title company. Not only will they assess the land and let you know whether the lot is clear and free, but they'll also check if there are covenants or deeds which might throw a wrench in the subdivision process.
The next step before investing in subdivisions is to check market conditions.
You need to ensure that a market exists for what you're creating. In case you can't sell the lots, you'll find yourself throwing money away.
If you choose to go for subdivisions, place a call to local offices to know about zoning restrictions that might exist.
They'll help you understand whether the property qualifies for subdivisioning.
It is crucial not to skip this step; having the information beforehand will help you decide whether to invest or not in the first place.
Since subdivision is a tricky process, it is best to consult professionals. You'll see how cities have increased restrictions and fees when it comes to properties in the past few years.
Professionals can help you understand whether it is worth committing that amount of money or not.
When you're subdividing the land, you have to consider the size of each division and local regulations. Factoring these, your lots might need to have new utilities installed.
Sometimes, the construction work can extend up to building a new road. You should account for these additional expenses before making any decision.
Going to professionals will definitely help you secure waivers or considerations with the zoning commission, even if your property doesn't qualify for subdivision at first.
These individuals can help you draw up a plat to help with the process of subdivision.
Wondering what that is? Well, it is basically a plan that shows how the subdivision will occur and what the access points and connectors shall be, as well as utilities present.
Not only does a plat help you form a fair idea of what's to come, but it also makes it easier to seek legal counsel if the need arises.
Once you receive the plat, the only step left to do is to actualize the divisions. Ideally, you have to submit the plans to the local officials, who'll go over them and approve the same.
Once the approval is given, landowners can move ahead with plans to divide this land.
Check for the procedures with local officials. You'll see that an application normally includes a plat map, fee for the application, and title certificate.
You cannot move forward until the required boards have turned in their responses. Obviously, this varies from place to place.
In certain areas, you'll get an answer after a routine meeting. However, in other places, it will be taken to a public hearing.
After the committee gets back to you, some alterations might be in order. Usually, they deal with accessibility and availability of utilities.
The surveying company is bound to put some pegs demarcating boundaries as well.
Once these changes are made, you'll arrive at the cusp of successfully executing a subdivision.
After you've done everything the board specifies, you should ask for a certificate of approval, which ratifies that the subdivision process is legitimate.
Once the conditions are met, the subdivisions don't take much time either.
There are certain steps involved in subdividing land. These include:
Ultimately, before you decide to subdivide your land, check how much it might cost you and whether the investment is worth it once you sell off the lots.
After all, if the alterations like building roads and installing utilities blow up to become a community project, then you should abandon the matter.
It is imperative you do adequate research and always turn to professional help as well as consultancies before undertaking this process. This will ensure a smooth process of subdividing the property.
That said, if you have any further queries, please reach out to us.