How To Profit From Property With Land Subdivision

Posted on Tuesday, March 12 2013

Part 2 of How To Profit From Property By Land Subdivision.

 

Land Subdivision

Land Subdivision is where land is divided and separate legal title is established for each of the new sections that are created.

With subdivision the main add value and profit opportunity is in the land, so in general the bigger the land the bigger the potential. But the size of the land is not all that matter, it is the Zoning and land terrain that would influence the profitability and the possibilities for subdivision.

As example is having a 10 acre block of rural land out in the country may not be as useful for a developer as having a smaller 1012m2 piece of land in the inner city suburb.

The rural piece of land may be zoned as rural land or a green belt and may never be zoned for building. As contrary the smaller piece of land in the inner city suburb may be zoned as high density land and 6-8 Townhouses could be built on it.

Understanding the local district plan and zoning is crucial for any property developer who wishes to subdivide and build on bear land. This information is usually available on any local council website.

In order to complete a successful project a Property Developer will need to put together a highly skilled group of people to work with, to name a few the developer would require the services of; Registered Land Surveyor, Engineers – civil, structural, traffic, acoustic, environmental specialists, Architects, Town planner consultant, Trusted Real Estate agent, Property valuer and Financiers to name a few.

Land Subdivision is a complex strategy and mainly used by the full time Property Developer Trader type.

Properties with Subdivision potential could be found on the Property Investors Network website; www.propertygenie.co.nz

Many big property developers started doing small residential renovations were you can learn a lot without risking much.

How To Profit From Property By Land Subdivision

Here are some benefits of becoming a property developer:

Acquiring at wholesale values
As a property developer you will not be buying properties at retail prices, you can “manufacture” and add value to your investments of 15%-35% below their market cost. This is because you don’t pay developer’s margin, agent’s commission, marketing and other costs usually included in the price of buying real estate.

Higher rental return
While you purchase the property wholesale by buying well or developing the property at building cost, your tenants will pay the retail rents. They won’t know that the cost of your property was substantially below the retail price. This means your rental yields will be higher than for someone who bought their property at market value.

Profitability;
As a Property Developer, consider the manufactured equity you could make selling your development projects at the right time of the property market.To Learn more and purchase my eBooks please visit this page:

 

In Part 3 of How To Profit From Property i will cover Exit Strategies for some of the Strategies covered in Part 1 & Part 2.

Click bellow to learn more and purchase my eBooks please visit this page:

Property Investment Two Must Read eBooks (Combo Special)

 

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Expert's Bio

Hadar Orkibi

Hadar is a full time Property Investor and Trader, Specialising in Do-ups & Add value, Multiple income properties, High Yielding, Commercial, Equity and "Move Forward" Properties. Hadar is co-owner and Sales & Marketing Mangers at www.PropertyGenie.co.nz. Owner of the Private House Buyers companies www.WeBuyProperty.co.nz & www.PropertyBuyersAuckland.co.nz/ Find Hadar on Google+

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