“The simplest definition of subdividing a property is when you take a larger existing lot and create additional smaller lots,” he said.
“This can be done depending on the zoning of that particular property, which is generally set by the local council.”
Mr Drummond said the process of subdividing started with checking the current zoning of the property with the local government.
“Ask the council if the block size of your property meets the minimum requirements for subdivision,” he said. “If you do have the potential for subdivision, it’s worth contacting a real estate agent with experience to give you an idea of what the lots or properties would be worth once the subdivision is complete.”
Mr Drummond said subdividing could create the financial ability for existing owners who needed an injection of money in order to upgrade their existing home or build a new one without having to sell the family stead. LJ Hooker Kalamunda Foothills Principal Grant Winning agreed that the biggest benefit to subdividing was the monetary gain it offered.
“Capital gain is the main motivation behind subdividing a block, but it can also provide a great opportunity for family members to build their own dwelling and be nearby,” he said.
However, Mr Drummond said while he did recommend subdividing to clients, it was important to remember the timing and what was best for the owner.
“Contact a surveyor about the requirements, costs and timeframes involved before making a final decision,” he said.
“In most instances, for the owner, subdividing can be a financial benefit and allow for possibilities that normally won’t be on offer.
“But, keep in mind that subdividing will bring more people and more traffic into the area and takes time and money, so plan and budget.”
Homework was the biggest tip both Mr Drummond and Mr Winning had for those looking at subdividing a block of land.
“Do your own research and speak to as many experienced people as possible,” Mr Drummond said.
“The numbers need to work out if you are planning on making a profit,” Mr Winning said.
“Just because the zoning allows it, that doesn’t mean subdividing to the maximum allowable is the best use of the land.”
Article by The West Australian YSABELLA SALISBURY