Two Situations in Which You Might Want to Create Land Divisions

If you own a very large plot, here are some reasons why you might want to divide it up and sell off each of the individual land divisions.

1. You want to sell your plot quickly

If you want the plot to sell fast, then it might be worth dividing it up, particularly if it's very large and worth a lot. The reason for this is that it can take longer to find a buyer who can afford to buy and construct a building on a very expensive plot, whereas there could be quite a lot of interested parties who could afford to buy and build something on a section of it. For example, if your entire plot is worth $900,000, there may only be a few people in the area who are both interested in the property and who have the funds (or can get a big enough mortgage) to purchase it.

In contrast, if you divided up the plot into three subdivisions worth $300,000 each, the pool of potential buyers who could afford to buy each of these subdivisions would be much bigger, simply because these subdivisions are more affordable than the entire plot and because most people don't want or need vast quantities of land for their construction projects. Because of this larger pool of interested parties, you would probably be able to sell off the plot, piece by piece, quite quickly.

2. Both renting and selling the plot appeal to you

If you like the idea of both selling and renting the plot, then creating land divisions might be a good idea, as this would allow you to do both of these things. You could, for example, divide the plot into two subdivisions, sell off one and then rent the remaining one. This might appeal to you if you would like to get a fairly large sum of cash quickly, but would also like to reap the long-term financial benefits and stability that come with having a regular income from a rental property business.

It's important to be aware that you may need to do some additional work to the subdivision you keep before you can rent it. For example, if you want to offer it to those who want to run campsites in the area, you must ensure it's set up for camping. This might mean getting the vegetation on it removed, levelling it out if the land is uneven, laying turf and arranging for it to be connected to existing utility lines.