You’ve taken the first smart step and connected with Geoworks to explore the subdivision potential of your Manawatu or Horowhenua property. Now, as you consider whether to move forward, it’s natural to weigh the potential benefits against the investment. Let’s delve into some key aspects to help you determine if your subdivision will be a worthwhile venture.
1. The Value Proposition: Unlocking Potential
Think about your why. Are you looking to:
- Generate income? Subdividing and selling sections can provide a significant financial return.
- Create a home for family? Perhaps you envision building a new home for yourself or family members on a separate title.
- Future-proof your assets? Subdivision can offer flexibility and increased asset value in the long run.
Understanding your primary motivation will help you gauge the “worth” of the project based on your individual goals.
2. Financial Realities: Balancing Costs and Returns
We’ve likely discussed initial feasibility and potential costs. Now, it’s time for a more detailed look at the numbers. Consider:
- Development Costs: Beyond council fees and contributions, factor in earthworks, infrastructure installation (water, wastewater, power, telecommunications), new accessways, fencing, and landscaping.
- Professional Fees: Remember the ongoing costs of surveyors, planners, engineers, and potentially legal counsel.
- Market Value: Research the current market value of comparable sections in your area. What are similar-sized lots selling for? This will give you a benchmark for potential returns.
- Holding Costs: If you plan to sell, consider any holding costs like rates and insurance until the sections are sold.
A comprehensive cost-benefit analysis is crucial. We at Geoworks can help you refine these estimations based on our local experience.
3. Time Investment: Patience and Planning
Subdivision isn’t an overnight process. It requires time for:
- Council Consents: The application and approval process can take several months, depending on the complexity of your project and council workloads.
- Physical Works: Earthworks, infrastructure installation and landscaping all take time to complete.
- Issue of Title: Once all works are completed and certified, the process of obtaining new titles also has a timeframe.
Are you prepared for this timeline? Careful planning and proactive management can help streamline the process, and Geoworks is here to keep things moving efficiently.
4. The Intangible Benefits: Beyond the Bottom Line
Sometimes, the “worth” extends beyond pure financial return. Consider:
- Increased Property Value: Even if you don’t sell immediately, subdivision can significantly increase the overall value of your land.
- Flexibility and Options: Having separate titles provides more options for future use or sale.
- Personal Satisfaction: Achieving a successful subdivision can be a rewarding accomplishment.
Your Next Step: Let’s Talk Specifics
You’ve already partnered with Geoworks, which means we have a foundational understanding of your property and the initial possibilities. Now is the perfect time to have a more in-depth conversation about your specific circumstances and goals.
Let’s discuss your detailed costings, potential returns based on current market conditions and a realistic project timeline. We can answer any further questions you have and help you confidently determine if proceeding with your Manawatu/Horowhenua subdivision aligns with your objectives.
Get in touch with your Geoworks contact today to schedule a follow-up discussion.
We’re here to help you make an informed decision and guide you towards a successful outcome!
