If you have a home with a large backyard, you can make good use of it by subdividing it and building another property; doing this can provide you with a good source of additional income if you rent the property out or sell it. Of course, you need to make sure that the return you are going to get is good enough to warrant the cost of the construction.
If you are going to subdivide your property and build on it, you will probably need to fetch the help of professionals, such as surveyors, builders and architects; take a look at this link for more information. Let’s take a look at why you may want to sub divide your yard and what issues you may need to think about.
How subdividing your backyard and building can make you money
Think about it, you have this piece of land that is probably just sitting there doing not much. Subdividing the land that comes with your property means you can make better use of it by building an additional property. You can then choose to either rent the property out, and secure a regular income, or sell it and get the benefit of the profits from the sale. The most important thing to remember her is if you are going to subdivide, you need to do your research and make sure the end result is going to be profitable.
You also need to decide if subdividing and building is something you are really committed to. It’s not always a simple process and you have to make a decision as to whether you want to commit the necessary time and effort to a process that on average takes around nine to fourteen months to complete
What you need to think about when subdividing
Subdividing can be an excellent means of securing extra income without having to move home and downsize. It’s also worth noting that the availability of land of your current property rarely affects the value of the property that much. If you decide that subdividing and building is for you then you have to decide between three options:
- Battleaxe – This is when you build a property at the rear of your current home and create a driveway at the side, for access to the new property.
- Side by side – If you have the space, then you could build another property next to your home, which means that both properties have direct street access.
- Multi-unit – This option involves demolishing your current home and building a duplex, triplex or quadruplex.
Once you have an idea what you are aiming for, you need to do all required groundwork.
- Speak to your bank to secure the release of any titles in relation to your current mortgage; if you have one.
- Speak to the expert builders, surveyors and architects. You cannot possibly be an expert in everything so it’s really not a good idea to do it yourself.
- Speak to the council to make sure you can get permission for the work. There are rules which need to be followed and which vary from area to area.
- Seek good legal advice so that you know all potential problems are covered.
Remember that you should never start this type of huge project without doing your research and having all your plans in place. That way you minimise the risks and maximise the chance of obtaining the profits you are seeking.
Article Submitted By Community Writer