Subdividing your massive tract of land into multiple residential lots can be beneficial. In general, you can sell each unit as individual blocks, earning more profit than you would after selling the entire property at once. The subdivision will also increase the marketability because more people will have purchasing power. Besides, when you subdivide, you can liquidate some real estate while sparing some land for personal use. Unfortunately, the process of partitioning property can be challenging for first-time developers. Here are some planning and preparation guidelines to help you ensure the success of your subdivision project.

Understand Your Property Zoning

When planning to subdivide your land, you should understand the zone in which you are located. There are stringent regulations on the number of homes which can be installed within a particular area. Every zone has predetermined rules on population density. Therefore, before you can take action, you should confirm that your block of land can be legally subdivided. You can obtain the information on the zoning laws from your local council. You can also engage a general contractor with subdivision experience to help in assessing the property and planning the partitioning design.

Know the Potential Obstacles

There are multiple obstacles which can hinder the success of your land subdivision project. You should understand these potential problems so that you can look for an appropriate solution as early as possible. For instance, if your property has easements and encumbrances, you might be unable to proceed with the partitioning of the block of land. Easements are special non-possessory rights which allow other people to use your real property. Encumbrances can restrict the development of the plot. If these restrictions are in place, you can look into extinguishment and lifting of the legal obstacles. You should also note that other factors such as removal of trees, drainage design and hardscaping can limit the ease of land subdivisions. 

Calculate the Feasibility of Subdivision

Finally, you should calculate the potential monetary benefits that you stand to gain from a successful subdivision. This estimation will help you determine whether the project is financially feasible for your current circumstances. In general, you should note that the approximation of profitability is not a simple question of price per new lot. You must remember that the development process is expensive. You must account for taxation, installation of utilities in new lots, application fees for lot titles and subdivision labour costs. For an ideal decision, you should discuss your expectations with your experienced contractor.