No matter how large or small your land is, it is important to sub-divide it in a manner that allows you to reap the most benefit out of it. In essence, sub-division is a process that involves dividing a lot of land into smaller lots, which define separate interests in the land, imposing restrictions on how occupiers can utilize the land. If you are into the business of commercial real estate development, effectively dividing up your land into a number of plots can lead to several advantages.
If you think your commercial land is a candidate for subdivision, here are some of the many benefits associated with land sub-division:
Make more profit on the total value of the land.
Depending on the prevailing market conditions, you can generate a significant amount of profit by dividing up your land into several lots. If land prices are projected to escalate, as is most often the case, you can generate a considerable amount of proceeds by selling the same plot of land, but as several smaller plots. In essence, you stand a better chance of negotiating a higher price for your land by dealing with more than one buyer; a single buyer may insist on being accorded a greater discount because they are purchasing a larger acreage of land.
Finance your commercial projects without selling all the land.
Another benefit of sub-dividing your land is that it allows you to save part of the land for yourself, just in case you still have some vested interests on the land. Maybe, you need some quick cash to develop a section of the land without getting yourself into debt. A viable solution in such as case would be to subdivide the land and sell the vacant part. Revenue earned by selling part of the land can then be used to finance your pending projects, be it building or extension of existing commercial premises.
Boost the salability of your land.
Aside from the aforementioned benefits, you may also more easily attract buyers for smaller chunks that are cheaper and more affordable than a single, larger slot of land. But first, try to acquaint yourself with what the market demands. Even if a potential buyer wishes to acquire the whole piece of land, carrying out the subdivision upfront will save them the time and effort involved in doing it themselves, increasing the marketability, and in most cases, the total value of the property.
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