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I’ve done several subdivisions – one to completion (ie with services attached) and one to a selling with “plans and permits”. Check first on the zoning in the area i.e. residential one or green wedge – this will dictate what you can and can’t do and then check out “overlays” which seem to really impact on costs for example our current property means a minimum average block size of 2000sqm and a minimum council contribution of 10k per block (five blocks). Will we make good money? yes but the time frame has been almost three years just for permits. We will sell an existing home (fully renovated) and four blocks of land. We would make more if we constructed on the new blocks but holding costs and cashflow mean we will sell some of the land first at least.
The simplest subdivision we have done has been a single 650sqm lot with a renovation of an existing house on the front of the block and a new small two bdrm unit on the back – we designed the two bdrm unit so we can rent it out as two single dwellings and so this is cash flow positive. After the renovation of the front property we sold this for the same amount as we had bought the whole site for originally meaning with sub division costs and renovation cost the back block cost us a little over 40k
Subdivision is definately a good option but make sure you can afford the drains on your cashflow as you do each project.
