A land division is the way developers create new allotments. When a developer or land owner creates a new allotment, they increase the value of their land holding by utilising the development potential of their property. This is often referred to as a subdivision, cutting an allotment into two or creating an additional allotment or a new title.
One of the misconceptions surrounding subdivision is that the development of land always requires the construction of a house on the land and that this creates the profit of the development. This is not always the case. For many projects, the underlying value of a property development is most often the land not the building. You can create a new allotment by undertaking a land division and then sell the allotment without having to build. This process is much less risky, more profitable and less time consuming.
There is no such thing as a “simple subdivision”. All factors need to be considered to mitigate risk and increase the likelihood of success. This is particularly crucial if you are contemplating purchasing a property with a view to subdividing.
Armed with the wrong information and inexperience, you can soon make a very expensive mistake. Whether it’s a simple 2 Lot land division or a large complex subdivision – whether you are a first time developer or an experienced one, all require the services of a licenced surveyor and development consultant
Your surveyor needs to have a pre-eminent standing with not only the council planners, but also the state government authorities that are crucial to the land division process, such as SA Water, The Lands Titles Office and the Development Assessment Commission.
In South Australia the Development Act allows any member of the public to lodge a Land Division Planning Application with the Development Assessment Commission. However, only a Licensed Surveyor can ultimately complete the project by pegging the new boundaries and preparing, lodging and obtaining final approval for the certified survey from which new titles will issue.
Appoint your team
One of the mistakes people make when developing their land is that they try to do everything by themselves to save money. This can be very costly. This also leads to a big loss of time which inevitably ends in more interest costs and a loss of development profit. To avoid this problem it is important that from the beginning of the project you identify which professionals you need to help you develop you land.
One of the crucial team members you will require is a licensed Surveyor/Development consultant.
Introducing our speaker – Rocco Cavallo, Cavallo Forest.
Rocco has operated his business since 1992. As a licensed surveyor he also provides development advice to people wanted to subdivide or change the title in anyway. He has a passion for his work and together with Josephine, his wife, they provide a personalized service.
Topics to be discussed:
- What is involved in the land division process
- How to read a survey and different types of surveys, eg topographical, contour and feature, set out Surveys, lease plans and boundary identification surveys
- What is on a title to watch out for – encumbrance’s, easements, slope, rights of way and what are they?
- How to convert strata title to community title
- Staging a development
- Residential Code applications, and non complying developments
- The land registration process.
- Boundary realignments – when you want to buy some of your neighbours land
- Extending sewer
- Case studies – when it goes wrong and when it goes right.
Subdivision is a great way to get ahead and make profit. It is an exciting and diverse area and is a great deal of fun and is always challenging. However, it is also risky and highly complex. You should always do two things:
- Due diligence and upfront planning – Gather as much information as possible before you buy and develop.
- Seek professional help. It doesn’t cost much and it will save you thousands
You won’t want to miss this one. If you have any intentions of subdividing land, come along and ask questions and learn more about this sometimes complicated but potentially financially rewarding process.
You are welcome to bring along friends or relatives who are interested in property investing – it is all about networking with like-minded people!