Introduction
There have been major developments in Parramatta’s business activity as well as in the residential property market. Facilitating a rapidly expanding population coupled with the Council’s major infrastructure investment, the demand for new housing in Parramatta is rapidly increasing, resulting in owners of property in Parramatta needing to evaluate various methods to realize the potential value of their land.
Subdivision of land is one of the methods that continues to appeal to property owners as well as property investors. The major benefit of land subdivision is that the land owner no longer needs to sell their block of land as a single lot. By the process of land subdivision, land owners can create two (or more) individual lots that can either be developed and sold in the short term or left as a long term investment.
In this guide, the process of land subdivision, the approval requirements, the costs involved along with the finance options and other important tips that investors should be aware of in order to help them value the successful realization of their land subdivision project have been included.
Why You Should Consider Buying Land for Subdivision in Parramatta
Today, Parramatta is easily one of the most reliably busy commercial hubs quickly becoming the most desired place to live in all of Western Sydney, thanks to costly infrastructure investments, growing transport networks, and the unending demand for new housing. Our campaign research points to Parramatta’s quickly growing status as the second Central Business District of Western Sydney and a high-priority site for the subdivision finance content.
There are multiple factors driving land subdivision in Parramatta.
- Strata subdivision
- Two-lot subdivisions
- Torrens Title subdivision
- Duplex developements
- Multi-lot residential subdivision
Each project will be unique, so getting planning and finance advice on the project will help make sure the planning process is not delayed.
Why Land Subdivision is a Good Idea in Parramatta ?
There are multiple long-term benefits for land subdivision in Parramatta.
As property prices in Parramatta have surged, many property owners are looking for ways to profit from their holdings. Subdivision provides a way to increase value without additional property purchases.
More Options
More tradable, separable, and flexible building blocks helps with planning for the construction of more housing.
More Ways To Make Money
More building blocks means the flexibility to choose to sell, construct more units, or hold land for the long term.
More Housing
As the subdivision of land continues, the rapid growth of the population in Parramatta will result in more housing and more profitable subdivision projects.
More Efficient Use of Land
More subdivision of land and blocks will help with the continuing growth of housing in the area.
Land Subdivision in Parramatta (Only)
As every property is unique, many factors will need to be reviewed to make a determination of land subdivision potential, including zoning, land size, and access.
Subdividing land can take a lot of time and money, so be sure to understand the unique characteristics of your land before you begin the process.
The following are some of the more common factors looked at when reviewing land to be subdivided:
- The zoning of the property
- The minimum lot size
- The size and width of the property
- The existing buildings on the land
- The frontage to a road
- Access to utilities
- Any environmental or heritage factors that may impact land
Land Subdivision and the Council
In most cases, the subdivision of land will require the approval of the local council before any work may commence.
Depending on your land subdivision project, you may need:
- Development Approval (DA)
- Planning assessments
- Survey plans
- Engineering reports
- Infrastructure approvals
- Utility service approvals
Requirements for land subdivision approvals differ, based on your land’s location, zoning, and the planning you want to do.
Land subdivision planning can be time consuming and difficult, but seeking professional advice from the outset can help minimize disruption, and improve the chances for the project to be successful.
Who Would Want to Subdivide Their Land?
Subdividing land can benefit many property owners and investors, including:
- Homeowners with larger residential land
- Land investors
- Residential builders and developers
- Families wanting to realize their property’s land value
- Builders with plans for residential projects
- People with long-term land investments
With the right planning in place, land subdivision creates new revenue opportunities to sell and build desirable new residential land and extend personal and professional investment opportunities.
Commonly Required Documents
There are many documents required to support a land subdivision project at the planning and financing stage and typically include:
Property Documents
- Certificate of Title
- Site plans
- Property information
Planning Documents
- Development Approval (if required)
- Survey plans
- Engineering/concept plans
- Architectural plans
Financial Documents
If you require financing, the lender may want to see:
- Personal ID
- Proof of income
- Bank statements
- Current loan information
- Assets and liability documents
Having the necessary documents ready ahead of time can help at the planning and financing stages.
Understanding the Land Subdivision Process
While the details of land subdivision projects can vary, there are core stages of the process that remain the same.
Step 1: Property Analysis
Land can only be subdivided if zoning, lot size, and planning controls permit it. Get familiar with all land controls and planning frameworks
Step 2: Get Expert Guidance
The best way to mitigate risk is to get subdividing expertise in the area. Consider hiring surveyors, planners, and finance professionals.
Step 3: Subdivision Plans
Subdivision plans are a way of showing the proposed division of land with consideration of planning requirements.
Step 4: Required Approvals
Plans go to the appropriate authority to be assessed. If the project is large, the authority may require more detail.
Step 5: Get Funding
If financing is needed, funding can be used for planning, surveying, engineering, and other project expenses.
Step 6: Infrastructure
After the plans are approved and funding is secured, all required civil works and infrastructure improvements are done.
Step 7: Record New Lots
After all required improvements and works are done, the subdivision is recorded. At this point, the new lots can be sold, developed, or kept.
Cost Consideration
Subdivision projects are more than just land costs. Consider all subdividing expenses.
Each project has its costs. Typical costs include:
- Consultant fees for planning
- Surveys
- Engineering
- Council application fees
- Contribution to infrastructure
- Civil works
- Utility connection
- Legal and conveyancing
- Property valuation
- Cost of finance
- Contingency
A project budget should help to limit financial risks associated with the project.
Typical Problems Subdividing Land
If you miss the important steps in the land development process, your project will be much more complicated than you originally planned.
Some issues faced by landowners are:
Buying land with no development potential.
You cannot subdivide any piece of land. You need to know the land planning regulations before buying land.
Cost Underestimation.
You may find that the cost of infrastructure or construction makes your project unprofitable. You are strongly advised to include a contingency fund.
Delays in Approvals.
Each project has its own complexities, and the planning approval on one project may be much longer than another.
To limit delays, you must work on your project as early as possible.
Insufficient Documentation.
Missing documentation such as plans and reports may delay the approval of both the planning and finance request.
Poor Planning of the Project.
If you plan more realistically and employ professionals, your project will have a much greater chance of success.
Things to Consider Before Subdividing a Land in Parramatta
If you want to subdivide land in Parramatta, these tips will help you prepare:
- Look at the local planning controls prior to purchasing property.
- Verify the land’s development potential.
- Write down a budget, including contingency costs.
- Get professional advice on planning and surveying.
- Prepare the financial documents before the planning finance request.
- Have appropriate finance options for your project.
- Assume the planning approval process will take a long time.
- Collaborate with industry experts for every step in the process.
Parramatta and the suburbs: where land subdivision demand is high
Growth in Parramatta is unprecedented for the entire Greater Sydney region. The continual improvement of infrastructure and an increase in population means more potential customers. Coupled with a demand for housing, this makes Parramatta perfect for subdivision projects that are well thought out and planned.
The suburbs surrounding Parramatta are also seeing an increase in demand for housing and are showing potential for land subdivision.
These suburbs are:
- Westmead
- Merrylands
- Granville
- Wentworthville
- Harris Park
- North Parramatta
- Carlingford
- Guildford
- Rydalmere
- Ermington
These suburbs, in addition to Parramatta, are ideal for land subdivision opportunities, which are subject to planning regulations and council assessments.
Importance of Finance for Subdivision of Land
The initial cost of land subdivision is high, with no expectation of a return for some time. Having access to the appropriate finance makes it easier to manage the cost of the project and keep the work moving.
Depending on the circumstances and the lender, finance may cover:
- Development site purchase
- Survey and planning costs
- Council fees
- Civil works
- Connections to utilities
- Consultant fees
- Holding costs
Selecting a finance option that appropriately covers the scope and timeframe of the project will be beneficial to the cash flow of the subdivision.
Conclusion
Land subdivision is still the go-to option for property owners in Parramatta and Western Sydney who want to benefit from the value contained in their land. The growth and demand for new houses in the region presents opportunities to create additional value for homeowners and investors through strategically developed subdivision projects.
Planned projects, an understanding of the local situation, and appropriately matched financing, are the three main pillars for starting the subdivision process. Developing the documentation for the project and the finances, and seeking professional advisory services, will increase the chances of having a successful and less complicated subdivision process.
To increase the chances of a successful and less complicated land subdivision process in Parramatta, Sydney, and the surrounding suburbs, it is best to seek professional advisory services as soon as possible.
FAQ
Land subdivision is the division of one parcel of land into several smaller saleable lots.
Zoning, planning controls, and other council restrictions and requirements impact the ability of a property to be subdivided. Each property needs to be reviewed individually.
As a rule of thumb, subdivision projects are required to obtain approvals from all impacted councils.
Costs to consider for a subdivision project include surveying costs, planning costs, engineering reports, council fees, legal fees, costs for the work required to install infrastructure, and costs to finance the project.
Financing may be used for subdividing if the project meets the lender's requirements and the costs are eligible.
There are many factors that determine how long a subdivision project takes, including the project's complexity, the approvals needed, and the work that involves construction.
Survey plans, planning documents, and financial and property information are just some of the required documentation that may be requested.
Subdivision is a good idea to many because it is a great way to increase the value of the property and produce more residential units.
It is possible, depending on the lender, for new property developers to get subdivision financing if the project is well thought out and the developer has the requisite documentation.
Mortgage brokers know the financing options and lender requirements, and they are able to assist in the finance application.
Why Choose Post Your Loan?
Post Your Loan is located in Parramatta and in suburban Sydney. If you are developing land subdivision projects, consider our finance options.
Our services include:
- Helping you understand subdivision finance.
- Identifying lenders for your finance needs.
- Assisting you in writing finance applications.
- Educating you on the approval process.
- Supporting projects in all stages from planning to completion.
No matter if you are dividing a residential property to create 2 lots or doing a larger subdivision, we want to simplify the finance process.
