Essential Considerations for Newbie Contractors During Land Subdivision

Posted on: 5 June 2020

Land subdivision for whatever purpose is a lucrative business, especially in light of increasing urban population that is demanding more housing. New contractors in Australia seeking to extract more value from their projects can subdivide a property into prime plots for development and onward sale to customers. However, a land subdivision is not a simple copy-and-paste activity but a complex undertaking that is governed by strict laws and city ordinances. Despite the complexity, observance of a few issues is enough to guide small-time contractors into the profitable real estate business.  

Site-Specific Restriction -- Although land subdivision is perfectly okay, most properties have site-specific restrictions that outline the do's and don't's. To avoid rookie mistakes, new contractors should hire the services of a surveyor to establish the regulations that influence land use in Australia. For instance, particular caveats might be issued, which contractors should verify before embarking on a project. The process is straightforward, and a simple online search can reveal the existence of any warnings. The approach is highly advised to minimise the loss of money and to fast-track the development of a construction project.

Density Coding -- Before contractors can move excavators to a project site, they should understand subdivision plans based on available land size. As a first step, density coding is essential before land subdivision. Most municipal authorities have set the threshold on the number of people that can inhabit a particular size of land. Most density codes are represented by symbols that outline the number of subdivisions allowed per hectare. The approach is designed to ensure that existing utilities can serve the residents in a particular area. Newbie contractors should liaise with a planning department at a municipal or a land office before commencing a project.

Easement of Land Subdivision Plans -- Despite the existence of strict laws, concessions might be provided by land or city authorities to firms offering utility services. Increased demands for specific services, means that the power lines might pass through private space. As a property developer, you should be aware of easements since dividing land into smaller lots might not be feasible, or it might escalate project costs. Notably, easement rules might complicate the construction process for new contractors who must ensure that utility services are not disrupted. Therefore, new contractors should exploit innovative approaches to overcome the challenge. For instance, public-private partnerships are a popular model where specific laws and fees are waived regarding a particular property.

For more information, reach out to a professional who does land divisions