Subdivision can be a profitable process.
At the same time, if it is not executed well, it can turn a profitable venture into a loss making and messy operation.
The subdivision process takes on average 8-9 months before the titles are issued.
There are numerous subdivision strategies:
A green title subdivision is where each lot is independent of the other. The lot has its own water, sewer and power services and there is no common property.
Green title subdivisions are generally more expensive as each lot needs to have its own independent utility connection.
A survey strata subdivision is where there is common property between lots. An example of common property includes a common driveway or a shared sewer connection.
Survey Strata subdivisions are generally cheaper as each lot does not have to its own independent utility connections or access way.
Battle-axe subdivision is typically a 2 lot subdivision where the rear lot has rights over the driveway.
As seen in the image below, the portion highlighted in yellow resembles an axe.
The WAPC & local councils often have specific requirements for battle axe subdivisions.
This is a strategy whereby the existing house is retained whilst the backyard can be subdivided and sold off.
This allows you to profit from the sale of your backyard whilst still keeping your main residence.
If you are thinking of subdividing your property and would like to explore which subdivision strategy best suits you, please feel free to contact us.