If carried out properly, subdividing your land can be a valuable decision that is sure to be advantageous in the long run. By taking your time in doing research about the regulatory laws and preparing well in advance, you can reap the following major benefits of subdividing your property:
- You can effectively double your profits, by carving large-size land into smaller sale-able lots. While much of this depends upon the conditions of the market of the area, typically you can enhance the overall value of your plot by sub-dividing the land into smaller pieces and selling it off to more than one buyer.
- By subdividing your parcel into smaller lots you can also considerably reduce your mortgage and save a lot of money in the long run. You also have the option of selling off your lots and using the money to pay off your existing mortgage or any way you like.
- Given the fact that smaller lots are more affordable for mass potential buyers, sub-dividing the land into smaller lots will considerably increase its marketability. With more and more buyers looking for compact and more practical living spaces, larger blocks of land remain attractive merely to the niche.
- While it might seem so, subdividing is not only about creating two adjacent pieces of land, but also rearranging your home boundaries and expanding your living spaces as per your preference and needs. In other words, subdividing your land gives you the opportunity to make volumetric changes in your land and create a more functional space.
- Subdividing your property allows you to liquidate a portion of it into cash and keep the remaining chunk for yourself. To put it in simpler words, in case you are in need of money and are looking to liquidate your real estate, you need not give up your entire property in one go. You can hold on to one lot and sell off the other.
Basically, it all boils down to the feasibility of subdividing your land, which means that you need to weigh all the potential risks and regulatory implications before signing up for a subdivision.