Land Sub-Divisions and Developments

Land sub-division is a very lucrative activity providing excellent cash-flow. Used in conjunction with "House & Land" packages it can considerably speed up your road to wealth. Conceptually it is very simple.

  1. Find a sub-dividable block of land.
  2. Lodge the application to sub-divide the block.
  3. Sub-divide when the Development Approval is received.
  4. Sell sub-divided sites (in up-market areas) or
  5. Build houses (in House & Land package Areas).
  6. Sell built properties.
  7. Enjoy the profit.

Of course, in real life it is a bit more complex than that. We must purchase a sub-dividable block of land at the price that includes a substantial profit. This means that we must know the market price of sub-divided sites with and without houses on these smaller blocks.

Since we are selling them to our group of investors ($30,000-$50,000 under the market price) there must be enough reserve if there are unforseen problems or delays.

Main Sub-Division Types

  • Small Scale Sub-Divisions (in "House & Land" Package Areas).
    Duplex, triplex and quadplex sub-divisions are fairly easy, inexpensive, predictable and quick to build. Typically it takes around 10-14 months to complete these projects.

    These sites are usually in suburbs where we build "House & Land" packages and it is another way to create even a greater instant equity for you.

  • Medium Scale Sub-divisions (in "House & Land" Package Areas).
    Larger sub-dividable blocks of land can have 5 to 20 sites to build either free standing houses or villas and/or townhouses. The building quality is same, but free standing houses are built on a larger block of land. Villas and townhouses are less expensive, while renting for almost the same amount.

    Naturally, the cost of these developments is much higher and it takes longer to get building approvals and to build. Typically, a 15 site takes 18 - 24 months to complete. The upside is: the profit is higher, so your instant equity is higher.

  • Small Scale Sub-divisions (in Up-Market Areas).
    The profit margin here is much higher since sub-division costs are pretty much the same, while selling price is considerably higher.

    Sub-divisions in up-market areas are suitable home occupiers, but not investors.
    Therefore, these sites are best sold when the Development Approval is received. However, given sufficient finances, this can be extremely profitable when up-market houses are built and sold.

What does this all mean to you? Well, Would you like to enjoy the profits from:

  • A House & Land package $50,000-$100,000 below the market price?
  • Subdivision & Development profits of 50%-90%?
  • A combination of the above?

Just click on the JV picture to find out how you can achieve this!   Partner with us through Joint Ventures (JVs)

Alan Seletkovic
CEO ACE Wealth4U Pty Ltd
~ Thunder From Down Under ~