Property Subdivision In Melbourne: 4 Tips For Pumping Up Profits

Property subdivision sounds fairly straightforward and potentially lucrative, but if you want to make a healthy profit, there’s a lot to consider before you buy land and start building. Let’s look at 4 ways you can pump up the profit on your subdivision.

1. Know your market

So you’ve found a plot of land in a nice Melbourne suburb. The question is, what type of properties are in demand in this area? Studios? Two bed? Four bed? How many cars will be on the driveway? Will a backyard be a help or hindrance? Is the type of property you’re planning to build common in the area, or in low supply? Will your target buyers be able to afford it? Whatever decisions you make, be sure that it’s driven by the market, not your own personal bias or emotion. And always speak to a local expert who can give you these market insights before you proceed. 

2. Build on flat land

The reason is simple; flat land is easier and cheaper to subdivide. Also look for land with minimal or no trees, as trees can complicate plans and any removal will add to your cost. 

3. Choose corner block properties

Corner blocks are great for subdivision because they can be divided into two lots that have street frontage, which adds value to each property. Plus, corner blocks don’t typically require a driveway to access properties behind the street-front property which frees up more land for development. The other benefit of a corner block is that your two lots will have kerbs and guttering on each side – a council requirement for subdivisions – so you’ll save tens of thousands by not needing to add in kerbs and guttering.

4. Choose the right builders

Once you’ve chosen your site and the appropriate design for your subdivision, choosing the right builder will help you save even more money. The right builder will be fully insured and will respect your time, be organised and have a track record of high-quality workmanship. The last thing you want is a builder dragging their heels and making costly mistakes that you need to go back and fix. The right builder will work with you to find cost savings without compromising quality. They should always put your needs first.

There are many subdivision opportunties in Melbourne and with the market tending towards smaller homes, subdivision is one of the more surefire investment strategies you can make with the potential for a higher return than single dwellings. With the right planning, many investors are seeing returns over $100,000 while seeing an instant increase in equity. Be sure to speak with local experts to understand the market along with your best options for a profitable subdivide.