| What is involved |
Subdivide
Key Considerations
| Developing |
It is almost the million dollar question no matter where you live… can I subdivide?
In Brisbane you can usually divide land into two titles if the total block is around 800 square metres, allowing for two 400m² lots, but the exact size depends heavily on your property’s zoning (e.g., Low Density Residential often needs 450m² per lot, small lots can be 300m²), minimum frontage, and specific Council rules like overlays or character overlays; use the Brisbane City Council’s online mapping tool to check your specific property.
- Zoning: Different zones (Low Density, Low-Medium Density) have different minimum lot sizes, as detailed in the Brisbane City Plan.
- Standard Lots: Often require a minimum of 450m² for a single dwelling, with a 10m frontage.
- Small Lots: Can be smaller (e.g., 300m² to 400m²) if specific conditions are met, especially in certain zones or near amenities.
- Rear Lots (Battle-axe): Have stricter rules, often requiring a minimum 600m² total (excluding the driveway) and a specific access handle width.
- Check Your Zone: Use the Brisbane City Council’s interactive mapping tool to find your property’s zone and any overlay maps.
- Consult the Subdivision Code: Refer to the Subdivision code within the City Plan for detailed benchmarks.
- Contact Council/Planner: Because factors like easements, slope, and specific precinct rules matter, it’s best to get a professional planning review
Realising your capital
Selling the Vacant Land is the most direct way. After obtaining separate titles for the new blocks, the vacant land can be sold on the open market. The profit from this sale (after deducting a portion of the original cost and subdivision expenses) is the realised capital.
But there other ways you can potentially generate more wealth from this same land…
- Building and Selling a New Dwelling: A homeowner can use the new block to build a second house (a dual occupancy) and then sell the new house and land package. This often yields a higher return than selling a vacant lot, but involves more a bit more work (don’t worry, we can take care of that).
- Building and Renting the New Dwelling: Instead of selling, the new property can be rented out, generating a new, passive income stream and growing the overall asset base and equity.
Dollars + Sense
There are of course tax implications. The profit from selling the subdivided land is generally subject to Capital Gains Tax (CGT). The main residence exemption usually only applies to the block with the original home, and only if that block and dwelling are sold together. If the subdivision is considered a “business” or “commercial transaction” with the intent to profit, the proceeds may be treated as ordinary income and potentially subject to GST, so it is crucial to get professional tax advice.
- Cost Base Apportionment: The original cost of the entire property (purchase price, stamp duty, legal fees, etc.) must be reasonably apportioned across the new lots to calculate the capital gain or loss accurately.
- Council Regulations: Local council planning laws and regulations determine whether a property can be subdivided and what conditions must be met (e.g., minimum lot sizes, access to services).
Once those above are under control, the next hurdle is the build itself.
There are many unknowns that go hand in hand with building a new home. What floorplan should I go with? What are the best materials? How do I keep costs down?
With FRD you don’t have to worry about any of this. We know exactly what people are looking for in an investment property and have extensive experience building them for a fair price…
Where FRD come in
At FRD, we are wholesale builders. We can not only build an investment property for you, we can also take care of selling it too through our extensive referal partner network.
This approach can help you realise the full potential value of your land smoothly with minimal financial outlay.
Our focus is on building affordable homes designed specifically for the investment market. We know what sells and we have a pipeline in place that is crying out for more of what we build.
Curious? Reach out today!