Subdividing - is it worth it? Q for developers?

[alanimal]

Hi Guys,

I have a rear section to my property and I am considering selling it as I do not use it.

My neighbor has shown interest but has been unable to put anything on paper so I am not holding my breath.

Approx area is 405m2 (half of 809m2).

Just wondered, if I did sell this section would I be up for capital gains tax? what is the % figure for this?

Do I have to pay for subdivision costs or can I pass this onto the buyer and make this their responsibility (i just sign paperwork) ?

What is the best way to get confirmation it is sub-dividable?

If anyone is interested in a section in Castor Bay get in touch

Thanks in advance - Al

[Rosco]

Hi Al,

Tax part. In general the starting point is that a subdivision will be taxable. So make sure you get specific advice from a property accountant. There are exemptions that you may fit into!

But , why sell? You basically have a free section. In general you can make large equity gain by subdividing and putting a house on it, and great cashflow by renting it out! I would start by getting the basic numbers and then reviewing the cashflow.
- ie is it sub dividable, meet with a surveyor
- cost to subdivide from surveyor
- cost to build
- estimate of value after build
- rental appraisel

Then either work out the equity gain and overall cashflow, or sit down with an expert and go through these.

Generally a sub dividable property gives a great opportunity, so I would be looking at the options carefully, before selling!

Ross

[robert786]

just add to ROSCO comment ,pl make sure overland flow/flood issues

[robert786]

does anyone knows experts on subdivision who can provide advise on whether it is worth subdividing by offering package rather than owner runs behind surveyor ,planner for months to conclude