Subdivide Your Bach

Subdivide your section to Double your money

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If you have a bach or holiday section on a decent plot of land, there is a good chance you could subdivide to potentially earn $100,000s, while still retaining the part of the land that holds your family memories for future generations.

We have helped families free up cash for inheritances, gifting or debt repayment in many holiday hot spots across Coromandel, Waikato and BOP. We are happy to have a no obligation chat just to help you understand if you do have options and what they might be, so feel free to get in touch.

When people start considering subdividing family land it can be an emotional topic and we've written a simple guide for how to discuss land, subdividing and inheritances with family members.

Most people have questions around the cost, timing and complexity of cutting up a section to sell parts of it, each one is different, but we've outlined the basics below:

Cost of subdividing

Subdividing a beach or lake section can cost $100,000 to $200,000 but is often near the lower end of this range. The most important dollar amount is what you could sell the new section or sections for. If sections in your area are selling for $350,000 and you spend $110,000 subdividing, then the $240,00 you make has more than doubled your investment. Note this is a hypothetical example, but a good starting point is to look at what sections nearby are selling for, and if the real estate market is on the way up or the way down. If you'd like to learn more we have answered the question in great detail here – How much does it cost to subdivide in NZ.

Timing of subdividing

Subdividing can realistically take up to 12 to 18 months. This sounds like a lot, but where else can you potentially double your investment in that time? Knowing this timeframe, if you start the process on a rising property market then by the time the work is complete you will have a section or sections to sell in a hot market.

Complexity

There can be a lot of complexity depending on many variables, but our team project manage the process for you, and we know local council rules. Having expertise on your side helps reduce the risk of unforeseen costs and delays.

If you've got land that could be subdivided to free up cash, then get in touch to learn more. We can provide you with some information you could take back to other family members to start the conversation.

Call 0800 268 632 to speak with one of our specialists today, we can help you understand your options, potential costs and potential gains.