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One tittle or subdivision?

Discussion in 'Development' started by AdamPineapples, 1st Aug, 2016.

  1. AdamPineapples

    AdamPineapples Well-Known Member

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    Hey everyone. I was just having a thought and wanted to get your opinion out of curiousity.

    What would be worth more, a property with one title or a subdivided lot?

    For example, if I had a peice of land with 4 units on it and I wanted to sell all of them. Would I get more if I subdivided the lot and sold them all individually? Or would I get the same amount of I were to just sell them all on a one title lot?
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Selling with a DA for subdivision would yield a better figure than a sale in one line. Selling subdivided will achieve a better figure again but reflects the work, time, risk and cost involved.
     
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  3. klabat

    klabat Well-Known Member

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    Are there lenders out there doing 3 dwellings under resi at 90%
     
  4. theperthurbanist

    theperthurbanist Well-Known Member

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    Separate titles will be worth more - far more buyers out there for a home/single IP than there are wanting to buy four, at once, next to each other.

    The only uplift you would get from selling as one lot that I can see would be if there was further development potential that only a consolidated site could facilitate.
     
  5. MTR

    MTR Well-Known Member Premium Member

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    it will be worth more, however it will still come down to the quality of the plan/designs, and they will sell if there is money in it for the buyer/builder. Comes down to understand the numbers
     
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  6. theperthurbanist

    theperthurbanist Well-Known Member

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    Absolutely!

    If you want a quick - location specific response speak to a prominent real estate agent in the area you are looking at and ask what similar properties in the area are selling for. They might not have much sales history/experience with the 'four on one lot' example but it is worth getting the opinion of someone 'at he coal face'.