If you own a large parcel of land, you would want to get a decent return out of it. While some people would prefer to put up a facility on the entire lot, a better strategy is to develop the lot into subdivisions. Subdividing a piece of land and putting up different developments is arguably the best way to maximise return. However, while the local council officers will guide you on ordinances and development restrictions, it is your prerogative to choose what to do with the subdivisions. This article highlights development ideas that will turn your subdivisions into profitable ventures.
Duplex Housing -- According to statistics, the number of young Australian adults living with their parents grew from 41.4% to 43.4% between 2011 and 2016. It can be attributed to the high rental rates, especially in major cities and the outskirts. Most property owners are, therefore, subdividing their land and building duplex housing. Since each unit sits on a subdivided lot, there is guaranteed privacy that young adults want. Additionally, duplex housing allows tenants to share common features, such as fencing, thereby lowering the total cost of the development, which increases returns. The best part is duplex houses are not complicated, and most are functional, which makes them affordable to most people.
Save Some Land -- Once you receive the titles to the new lots, it can be tempting to develop or sell every piece. However, it is wiser to exercise restraint and think about the long-term. Setting aside one or two subdivided lots is a great place to start. See, once every lot has been developed, the value of the undeveloped subdivisions will increase over time. It is especially the case if the developments on the lots promote commercial activities such as acting as apartments or retail stores. Therefore, if you hold onto subdivided lots long enough, you will be laughing all the way to the bank in due time.
Parking Lot -- As of reports from 2018, the number of new cars bought by Australians has been increasing over the last five years. It has placed a significant demand for parking space in both commercial and residential facilities. Shrinking lot spaces has also forced households to seek other parking solutions such as rooftop parking lots. Unfortunately, only a small number of buildings — commercial and residential — have such facilities. You can, therefore, develop one of your subdivisions into a parking lot where users pay a daily or monthly fee. However, you must first find out if a parking lot is a development not restricted by council ordinance or neighbourhood covenants.
Speak to a professional who works with subdivisions to learn more.
