• VCAT

February 6, 2019

How using a subdivision company can help you

Whether you are looking to free up money by subdividing your backyard or are looking at doing a multi-unit subdivision project.

Subdividing your land can be very profitable. But with the potential for profit comes the potential for problems along the way and it may not run as smooth as you think.  Engaging a professional to help you through the subdivision process makes it a lot less overwhelming and gives you time to focus on the bigger picture of your development.

If you have a big backyard subdividing and selling it for a profit seems like an obvious and easy opportunity. But it is hard to know where to start and whether you are in fact able too.

Determine whether you have enough land to subdivide

The first step is to make sure that you have enough space in your backyard to build a second house. Follow our quick site test to determine if your site is large enough to subdivide.


The second step is to check that you do not have any restrictions on your property that may prohibit your subdivision. Some properties have covenants attached to them which do not allow more than one house to be built on a lot.  Town planners can identify if your property has one of these covenants and advise you on what to do next.  A restrictive single dwelling covenant does not mean that subdivision is not possible as it can be varied in order to allow you to subdivide, but it does make the process more complex.

Check for subdivision covenants or restrictions

Here are some of the ways a subdivision company can help you through the process:

  • Professional town planners have extensive knowledge of planning controls and provisions so will be able to know immediately whether subdivision is an option for you and ensure a seamless approval.
  • Town planning professionals have experience with local councils and can advise on what will be the best development option in your local area. They know what type of subdivision will have the best chance of approval as well as what type of design will be most attractive to buyers.
  • Subdividing your property means lodging a lot of forms. Engaging a professional company saves you time filling out complex and lengthy paper work.
  • Speedy approval is extremely important for a profitable subdivision. While delays will cause your profit margin to quickly decrease, having a professional on your side makes the process faster and much more efficient.

Remember subdivision is not as simple as you may think. Councils usually only approve subdivisions with town planning approval and development plans that they have endorsed.  This is to help them control what is built on the new vacant lot and ensure that planning rules are followed. If you are wishing to subdivide without building please read this important article to understand the process.

Do a cost/benefit analysis 

In addition when deciding whether to subdivide make sure you are aware of all the costs involved. You are responsible for paying the contribution fees to the water, electricity and sewer provider when your new block of land is created. Until these are paid you will not be able to sell your subdivided land. You will also be responsible for erection of onsite fences.

Appointing an experienced company to help you along the way is critical in making your subdivision experience faster, easier and less costly in the long term.