Subdividing Perth Properties
The rewards of subdividing property can be considerable. The opportunity to create a new property to fulfil market demand can bring good returns quickly. Returns from the sale of a subdivided lot can then be reinvested to reduce a mortgage or towards your next property, or you may choose to keep the new block and build on it.
We find subdivisible properties for experienced developers and for investors wanting to do their first subdivision. We also find add-value sites for investors who plan to subdivide sometime in the future, but in the meantime plan to just rent out the property.
The types of subdivision properties we usually deal with are:
- Duplex subdivisions
- “Retain and subdivide” projects
- Triplex subdivisions
- 4 or more unit subdivisions
- Conversion from built strata to survey strata
- Amalgamations and subdivision
- Staged subdivisions
Finding a Property to Subdivide
- Step 1 – Initial Meeting
If you’re new to subdivision, we’ll explain some of the key fundamental strategies available to you using simple diagrams and easy to understand language.
If you’re an experienced subdivider, we review your requirements and budget and what type of subdivision property will achieve your goals.
It’s important to have enough cash available to complete the entire subdivision and a typical cost may be anything from $60,000 to $80,000. If you do not have the cash available, we would need to assess whether you are able to borrow sufficient to complete the subdivision.
- Step 2 – Determining your Subdivision Strategy
Now that we understand where you are and what you want to achieve with your property subdivision, we help you formulate a realistic strategy to help you achieve your goals. We look at the available subdivision strategies and which of these might suit your time horizon, your budget and your objectives.
We consider buying to subdivide immediately and the different ways to do this, compared with buying to subdivide later and the best ways to do this.
- Step 3 – Subdivision Property Search
Once you give us the go ahead, we review the types of property and suburbs might match your goals and budget. We also consider zoning, rezoning, infrastructure, planning policies and supply.
We undertake a comprehensive search of properties available for sale including off-market properties from our contacts in the industry. Very quickly, we refine our search down from a total pool of 8,000 to 15,000 properties, to just a handful with the right subdivision potential based on our tough selection criteria.
At this stage we have a rough draft of how the property might be subdivided, depending on the zoning and the local Council requirements.
- Step 4 – Property Inspection
Once you have selected a property from our shortlist, we carry out an inspection with you on Zoom/FaceTime or in person. We look for the good and bad and ‘potential problems’ or expenses to factor in. We ensure the property is as expected or we walk away.
- Step 5 – Due Diligence
Once you have decided to proceed with the subdivision property, we conduct a detailed due diligence. This includes consulting the Residential Design Codes, the Local Council, Water Corporation records and various other authorities and information providers.
We also include the requirement for a surveyor report to give you peace of mind that the property can be subdivided in the way you expect. A subdivision cost estimate can also be ordered as part of this report.
If you’re intending subdividing and selling, you might at this time do your own financial feasibility to ensure you’re satisfied with the potential returns of the project.
- Step 6 – Accurate Pricing
We obtain up to date information about the property as well as comparable sales data, as this allows us to determine its true worth. In doing do, we make sure that you never overpay.
- Step 7 – Acquisition Strategy
We ensure the Contract of Sale includes a number of conditions that work in your favour, not the seller’s. We prepare our acquisition strategy and negotiate on your behalf. By drawing on our extensive experience and utilising all the legal tricks-of-the-trade, we ensure you purchase the subdivision property for the lowest price possible.
The Subdivision Process
When you’re ready, we help you subdivide your property by connecting you with subdivision specialists who can handle everything involved in successfully managing a subdivision project in Perth, WA.
The subdivision process includes:
- Consult with the local shire and the WA Planning Commission
- Conduct survey, subdivision assessment and prepare cost estimate, if not already done
- Make application to the WA Planning Commission for subdivision
- Carry out the requirements of the conditional approval, such as demolition, clearing land, and installing services such as power and sewerage
- Conduct final survey and apply for titles
The whole subdivision process typically takes 6 to 9 months before you have your new titles.
Zoning classifications within suburbs are constantly being reviewed by councils as the authorities look for ways to cope with Perth’s fast-growing population. Through our experience and knowledge, we can sometimes find properties that are ‘pencilled in’ for rezoning. From an investment point of view, such knowledge can create a great buying advantage. Property Wizards usually only considers properties proposed for rezoning when they are nearing the later stages of rezoning approval, to minimise the risk that it won’t go ahead. However, the only way to avoid that risk altogether is to choose properties that are already zoned for subdivision.
Considering subdivision? Perth investors in need of advice are encouraged to contact the experienced team at Property Wizards.