plan of subdivision victoria

Are you interested in learning about plan of subdivision Victoria?

More and more regular Australians are turning away from more traditional forms of investment.

In years past, acquiring an existing property or two for a rental income was considered the best way of investment.

In more recent times, regular people are looking to maximise the value of their land. They do this by building two or more dwellings on their land, and then selling them, or living in one and renting the other, or other combinations of options.

Yet to build two or more homes on a single lot of land, a process called subdivision takes place. This essentially splits the lot into two or more separate titles.

And in order to subdivide, you need a plan of subdivision in Victoria. This is a document that is presented to the local authorities – local government areas, or councils, which they need to approve.

In this useful article, we’re going to share seven things that you need to know about plan of subdivision Victoria.

This is so that if you decide to attempt this as a form of investment, you’re armed with all the information needed.

What is a Subdivision?

what is a subdivision

As we mentioned above, a subdivision is a process whereby a single piece (or lot) of land is split into two, three, four or even more separate titled lots. A house, usually a townhouse or a unit, then gets constructed on these lots.

This is so that each house can get sold separately.

Why Would You Undertake a Subdivision?

There are a few reasons here. To start with, you can’t sell a property that isn’t on its own titled lot of land.

If you’re dual occupancy subdivision for investment purposes, you want to see your money – right? Right!

So, you need to go through the subdivision process to see your return on investment.

The reason why people do this instead of investing in existing property for rental yield is there is more profit to be made and sooner.

A rental property might yield you a certain amount per year. That’s provided you have tenants in, and that they pay the rent and don’t damage the property.

A subdivision project allows you to sell your properties off the plan, so as soon as the build is finished, you can see settlement and walk away with money in the bank – and more than a rental would yield in a year.

You can actually sell the lots off without building both of them yourself which you can learn more about here.

Another reason is that sometimes people want to downsize, but they love their area.

By building two homes with a plan of subdivision Victoria, they can live in one and either rent the other out or sell it.

This means you can stay in your beloved suburb and street without having to move to downsize.

Learn more about the cost involved to subdivide land.

How Can I Do a Plan of Subdivision Victoria?

A plan of subdivision is just one part of a property development project. We’ve written extensively about the town planning process and the residential development process if you’re interested in learning more.

Essentially, once the subdivision builders are on-site and begin works, you begin what is called a Plan of Subdivision application.

By now you would have engaged a land surveyor. They will give you a list of things to do and paperwork to complete to get your subdivision approved.

It’s super important that you get everything completed before the construction finishing. You need each property on its own title before you can settle your sales.

You submit your plan to the relevant local authority, who will usually get back to you with a “request for more information”. Get them what they need, and you’ll see your plan approved.

There are usually fees involved too, so make sure you have spare capital around, as you’ll need it for various stages of the project.

Who Approves a Plan of Subdivision

plan of subdivision approval

As we’ve said, this is always the domain of the local government or city councils. They have a town planning department that exists to approve construction, subdivision and demolition requests.

What Laws Cover the Plan of Subdivision Victoria?

Everything about subdivisions in Victoria is covered in the Subdivision Act 1988.

subdivision act 1988

This piece of legislation provides the legal framework for subdivision, easements, restrictions, common property and the creation of owner’s corporations.

If you’re considering getting into property development as a career, you need to become familiar with this piece of law.

What is the Typical Profit from a Subdivision Project?

As with any significant for-profit project, there are several moving parts and variables that are constantly shifting.

It’s up to you to be savvy enough to stay on top of everything and to come out on top.

If you’re not comfortable with this, we seriously recommend engaging project management professionals like Little Fish to manage the process for you, end to end.

Because of the variables, we can’t put a magic number on the amount of profit from a plan of subdivision Victoria build.

But, if you get it right, it can be extremely profitable.

How Long Does a Subdivision Take?

Again, there’s no magic number. Because it is a simultaneous process along with the construction, it can often take months to even a year.

We’ve seen some projects take longer because there are lots of things that can pop up.

For example, disputes with your townhouse builders and subcontractors can stall a project, as can getting the paperwork wrong and having to resubmit it.

If you want to know if you can subdivide your property, check this out.

Want to Know More?

little fish properties

Are you keen on undertaking your own subdivision property development project in Victoria? Or perhaps you just want to know more about how it all works.

In either case, the friendly development team at Little Fish are ready to help. We do this, day in and day out, full-time. We can consult and advise you, work with you or even manage a whole project for you.

You can call us at 1300 799 277, get in touch today.