Retirement can be a scary word if you don’t know how you’re going to raise enough money to qualify. Let’s be honest, retirement is a scary word in general. But what if you could raise enough money to pay for your retirement without spending years of overtime on a production line? It turns out, if you have invested in real estate over the years, this could be a dream come true.
WHAT IS SUBDIVIDING?
Imagine your house sitting on five square kilometers of luscious green or sprawling landscapes of outback beauty. You’ve had it for the past decade, but you’re getting tired of the upkeep. Subdividing takes care of that for you. Instead of selling your property as a lump sum, dividing your assets actually accrues more money. If you’re not ready to subdivide just yet, hold onto the property until there’s an upswing in real estate profits. Make gaining money follow your schedule.
What if you would like to get started but you have no real estate? Start by finding the perfect property and start your subdivision from there. Putting 10% of your money aside after every paycheck will undoubtedly get you closer to your goal. It’s all about getting started.
Actually taking the steps to subdivide your property is easy. If you already have the land, you’re halfway there. If you’re still in the market for a good piece of property, keep these steps in mind.
Acquire the Land
We went over the necessity for having land, but we’ll take it a step further. If you’re a land owner and want to subdivide, take a look at what price other real estate is selling for. This will let you know if you have a shot at selling your property at the rate you expect. If your land has flooded or is infested with some weird fungus, it’s likely that others will not want to buy it, so keep a real estate professional handy, just in case.
Take a look at where your property is located. If you want to buy real estate in the middle of the outback with no neighbors for hundreds of kilometers, you may want to reconsider. If you do get some bites, it’s possible that the buyers don’t plan on sharing their land, so subdividing would be a loss.
Always take into account how big the lots should be. Some customers may be satisfied with touching a neighbor’s wall while standing in the front door, but if you’re looking to upscale the price of the property, you may want to give the buyers a little space. Permits concerning size regulations are also available at your town office, so make use of the free information.
Ask yourself what kinds of improvements you’ll have to make for the property to sell well. Trees may need clearing, parking lots may need paving, and sidewalks may need laying. How many improvements do you expect to make to the area? This plays a large part in your property of choice. If buyers are expecting a suburb-type style for their property, you may need to shell out copious amounts of money to meet those expectations.
If you buy when the market is high, you may be disappointed in the fallout. Property values rise and fall with the times, and you might find yourself in a bit of a pinch if you can’t get the property off your hands in a fair amount of time. If the land is already developed, investigate the construction you’ve inherited onsite. If you think you’ve got a great buy on a location by the ocean but you realize that mold covers every inch of your purchased property after you’ve purchased it, you’re in for a nasty surprise. Take the time to see exactly what your property holds, good or bad.
Fill out the Paperwork
Ah, your favorite part of any job: filling out the paperwork. While this may seem tedious, it is necessary to complete the sale on your new property.
First of all, fill out the paperwork associated with the town. It’s easy to glaze by this, but you need the permits associated with subdividing your property. Consider the land lines of your property. How many subdivisions can you actually make? Remember, some property is set aside for the state for roads and overall town and county maintenance. Don’t be alarmed if your plan to create a sidewalk waterslide is shot down by the city.
Keep in mind that subdividing property involves the separation of taxes to each section of the subdivision. Be aware of property taxes that may change depending on how many pieces the land is split into and where the land is in regard to landmarks.
Follow the Markets
Once you have bought your dream property and filled out the paperwork to make subdivision happen, keep your eyes glued to the markets. Like we’ve said before, property values move up and down over time, so find your best opportunity to sell that beautiful property.
Consider what kinds of people you’ll invite to invest in your subdivision. If you’ve got a long list of people who are willing to pay with chickens, you may not have the best audience (unless, of course, it is your dream to own a chicken farm). Are you expecting houses with families or corporations? Are you looking to set up apartments or divide the property into individual rollercoaster attractions? Have a plan in mind so you can cater to the audience you want.
Look for a version of subdividing land that will bring in money and let you enjoy the experience. Just like any good work, it takes time and energy to get where you want to go. Building revenue over time comes through doing your research, but, once that’s complete, sit back and enjoy the revenue essentially seeping into your account over time. Retirement is pretty much in the bag after starting up your own subdivision exploits. After all, what’s better than automating your income?