Purchasing property on larger blocks in older subdivisions can generate extensive profits if the property can be subdivided.
In recent years local council regulations have varied and smaller subdivision is allowable in certain areas. This change in policy has allowed an opportunity to purchase older property in older subdivisions where a developer/renovator can undertake the renovation of the existing dwelling and subdivide the land creating the opportunity of profit.
Here are some tips to get you started:
- Contact local council and familiarise yourself with its policies in relation to subdivision and development.
- Identify the types of areas where you can find suitable properties for subdivision.
- Canvas those areas with agents and personally to see if you can find a seller.
- Make sure you have your finance in place so that you are ready to act should the opportunity arise.
- Keep you first project simple. A small, successful sub-division will put you in good stead for future projects
- Always do your homework on the area, market and property!