Subdividing Before Building | Multiply Property Group

How to Subdivide Your Block Before Building

Most people are familiar with the idea of the knockdown-rebuild approach to property subdivision. Demolishing that old four-by-two and building multiple neat, modern townhouses is a common property investment strategy. 

But what about subdividing before you build?

Developing a subdivided block is often more profitable, however securing the financing to build multiple developments may not always be preferable – or possible.

Although it’s a less common subdivision strategy in Perth, carving up a block before redeveloping can help investors (and owner-occupiers) achieve their property goals. 

So if you’re looking for a way to fund your building project, accumulate a nest egg or capitalise on a vacant block, you might consider subdividing before you build.

Here’s what you need to know about the process from Perth’s subdivision experts.

Why subdivide your block before building?

Around 13,000 residential lots are approved for subdivision every year in Western Australia. The WA Planning Commission (WAPC) estimates the average lot size for Perth subdivisions is 375m2, although more than one-third of approved lots are under 320m2.

Put simply that means your subdivision goals might still be achievable even on a smaller lot. And there are many benefits up for grabs.

Reduce costs

Subdividing vacant land means you can capitalise on rising land values without financing a new development.

Sell the second lot to fund your build

If you choose to live on one of the subdivided blocks, selling the other parcel(s) can give you the necessary cash flow to build your own dream home. 

Make some money

By engaging a professional Perth subdivision company, you can efficiently divide and sell off land parcels, bringing in a great return on a wise investment.

Retirement nest egg

Purchasing vacant land is a popular investment strategy. We can help you subdivide and sell off the block when the market is up so that you can stash the money away for a comfortable retirement.

 

4 steps to a successful subdivision in Perth

Perth subdivisions require a lot of careful planning. For the WAPC to approve a subdivision application, the owner needs to meet certain conditions, which will be unique to the block. 

Subdivisions are always complex, although the process for subdividing vacant land is different from a developed block. 

This is where partnering with a Perth subdivision company is crucial. Not only to facilitate a smooth subdivision, but also to ensure the highest possible returns without costly mistakes along the way.

While the following is not legal advice, we hope it helps you understand the subdivision process.

Step 1: Feasibility

The first step in your subdivision journey is a detailed feasibility study to assess the best strategy for subdividing. Some of the factors we consider when determining the viability of a potential subdivision are:

  • Existing services like power, sewerage, telecommunications, water
  • Applicable zoning laws
  • Slope and retaining walls
  • Lot size and arrangement
  • Existing dwellings to be demolished and cleared
  • Property market movements
  • Title type: Green Title, Survey Strata or Built Title subdivision
  • Subdivision costs 

We mentioned that land subdivisions are complex. They are also unique. Every block has different characteristics, and every potential subdivision comes with different considerations. 

As a licenced surveyor and experienced subdivision company, Multiply Property Group has the expertise to guide you from the first stages of a subdivision. Our goal is to give you all the information you need, tailored to your property investment strategy, so that you can make an informed decision.

Step 2: Planning and consultation 

The WAPC has a lot of helpful information about subdivisions online. You can use this to be as involved as you want with the process while we create detailed site surveys.

Site surveys are essentially your subdivision plan. After the initial feasibility assessment, our surveyors will draw up subdivision plans while also working as facilitators between you and the local Council. 

Our job is to:

  • Create site surveys for approval
  • Ensure subdivision plans meet Council requirements
  • Work on your behalf to improve the likelihood of approval

We have more than 15 years of experience working with the WAPC and Councils, helping WA landowners like you navigate the bureaucracy without unnecessary headaches.

Step 3: Submitting surveys and applications

You might not be surprised to learn that Perth subdivisions require a long list of forms. The approval process is highly detailed:

  • Apply and submit plans to WAPC
  • Application is referred to local government and utilities
  • Approval subject to conditions 
  • Conditions met 
  • Plans submitted to Landgate
  • WAPC endorses the application with Landgate after consultation
  • Final approval

The WAPC might return a “conditional approval” decision for many reasons. Typically, the conditions are routine, such as clearing the site of dwellings or trees. Our contractor network can quickly, professionally, and affordably complete these required steps, preparing your parcels for their new owner.

But if you go it alone, you might get thrown a curveball. Unforeseen costs like local government fees, extensive remedial works or bushfire preparations can quickly make your subdivision unappealing. The process can stretch out for quite some time. 

By working with a seasoned subdivision expert like Multiply Property Group, you can avoid the cost and frustration of a stalled application. We identify these issues early, saving you stress later.

Step 4: Selling subdivided lots

Congratulations, you have successfully subdivided your block! Now you are ready to put those brand-new Titles on the property market and take the next steps in your property investment journey.

We will help you find the right buyer and sell your subdivided lots for the best possible price. On the road to profit through property investment, every step is an opportunity to maximise returns. That’s why our property sales team prioritises your strategy and goals, providing tailored advice and helping you secure a sale.

Advice from Perth’s subdivision experts

Subdividing your block before you build can be a smart way to make a nest egg for retirement or raise capital to build your own home. But the legal and logistical complexities mean you need to involve a Perth subdivision expert or risk the financial fallout from making a misstep along the way.

Here at Multiply Property Group, we have spent 15 years helping Perth investors and landowners maximise their profit potential. 

In all that time, the one thing that hasn’t changed is our commitment to helping our clients realise their goals. We work closely with clients to facilitate a smooth, stress-free subdivision, creating an enjoyable and rewarding process.Contact our team to find out more about your subdivision options, including subdividing without developing.

Contact Us

Want to know if you can subdivide? Click the button below to complete our free online

Address
This field is for validation purposes and should be left unchanged.