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Subdividing Your Land to Maximise Profit


Understanding the basics of subdivision

Land subdivision refers to the process of dividing a larger piece of land into two or more smaller lots. The common types of subdivision include: 

  • Subdivide your land and sell the new lot to someone else.
  • Build a house on the new lot, which you could either put up for sale or rent out.
  • Knock down your existing home and build multiple smaller lots.

What are the benefits of subdividing your land?

So, what are the benefits of subdividing a block with two detached dwellings? Two is always better than one, the traditional thinking of “one home per block” is making way for innovative property solutions. Many people are now recognising the potential of knocking down a single home and reconstructing two new houses on the same plot. This can be done through subdividing the land with a strata title or having both properties on a community title. Two properties allow investors to bring in two rental incomes instead of one, or if intending to flip straight way, improve the rate of return.

Building two detached homes on a block comes with a range of benefits that a duplex simply can’t compete with. Here are the standout benefits:

Maximise your returns

Two properties mean potential for two rental incomes or the chance to sell both homes for an amplified return on investment.

Enhanced property value

Two separate homes, in most cases, have a higher market value than a duplex and are more enticing for potential buyers.

Flexible development timeline

With two homes, there’s no rush. Build them concurrently or finance one before starting the other, depending on your budget and strategy.

Adaptable to land layout

Odd-shaped plots can pose challenges. Yet, two individual homes often offer better solutions in terms of cut & fill and land levelling.

Elevate liveability

Separate dwellings enable enhanced design flexibility. Embrace natural light, and make the most of the unique attributes of each side of the block.

Bentley 38 (aura Dv2) Kitchen 1

Potential challenges with subdivision and how to overcome them

When it comes to subdividing your land, it’s not just about assessing the potential advantages. It’s equally important to be aware of potential challenges and how to navigate them. 

  • Unexpected costs and budget overruns: Even with the most meticulous planning, unexpected costs can arise during the subdivision process. This can be solved by setting aside a contingency fund – around 10-15% of the projected budget. This acts as a cushion for unforeseen expenses. Also, ensure before starting the subdivision to engage in a comprehensive site analysis. This can help in identifying potential issues that might incur additional costs. 
  • Delays in obtaining approvals: The subdivision process can require various approvals, often from local council and other regulatory bodies. Delays can occur due to backlogs, incomplete documentation, or changing regulations. It’s important to maintain open lines of communication with the regulatory bodies and ensure all paperwork is completed accurately. 

Can I knock down and subdivide? How much profit can I make?

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Before & After of 16 Huon Street, Broadbeach Waters

Experience is key when it comes to knock down and rebuilds. Coral Homes has 30+ years of experience and recently completed a knock down and rebuild of two homes on the one block in the popular Gold Coast suburb Broadbeach Waters.

The project featured two of our New Hampshire 33 products, which have been specifically designed to fit on a block with narrow frontage (10m wide or more). Specialising in narrow home designs for 9.5m or 10m frontages, these types of homes are perfect for a subdivided block.

Coral Homes QLD State Sales Manager Brad Richardson said “we do lots of knock down rebuilds, and our range of home designs which can fit on blocks as small as 10m wide are perfect for these kinds of projects. The quality of the homes we’ve built at Broadbeach Waters really complement the picturesque canal views.”

After this property was knocked down and subdivided, the new value was upwards of $3 million. If you’re considering subdividing your land to maximise profit, our team will ensure you’re informed and comfortable throughout the process, embodying our commitment to transparency, quality and exceptional customer service.

Love where you live, but outgrown your home? We can help!

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