My Backyard Subdivision – Ten easy steps to property development nirvana
Property development is a great way to add value to your property. A backyard subdivision (dividing one property into two or three titles) is straightforward if you know what to do, who should do it and more importantly in what order things are to be done!
But how do you find all that out? A good place to start is to type “property subdivision” into Google.
You can also read this blog. Every fortnight, as it happens, I will take you through my own back yard subdivision from buying the property through to building a house on the back. Some of the topics I will cover are:
- Due diligence and feasibility – checking the development works before you buy.
- Buying the property, titles and boundaries – what to look for.
- Considering council rules on development, consents, contributions, service connections, zoning– how do they affect me and how much will they cost.
- Dealing with banks and insurance – what you need to know.
- Working with draughtsmen/architects and getting building consent.
- Working with a builder – there are many different options out there.
- Engineers & surveyors - who does what?
- Dealing with Contractors for preparing the site, drainage, retaining, electricity, telecoms
- When do I pay tax on a development?
- What do lawyers do? Getting the title issued and contracts completed.
Property development relies on many experts advising on the development. Getting them all on the same page and working to your timeline is your real organisational challenge. In my next blog I find out about the hard realities of risk and return and why every dollar counts. I also learn that project management skills are the biggest asset to bring to the table. We discuss feasibility, due diligence and risk and return.
See you then.
If you have any questions for Tony Savage about his property development process - please feel free to contact him here .
My Backyard Subdivision - Part 1: The Essentials of Feasibility
Before investing in your idea, test if there is actually a market for what you are selling.