4 reasons to subdivide your property

Whether it’s about financially benefiting from land which you already own, splitting your assets between your children or simplifying your life by downsizing, there are a number of reasons why subdividing your property might be the right way to go.

Property Blog Articles | Advice | Contractual Matters | Market News

Selling portions of land

A property can be subdivided into two or more portions, each of which may be sold individually to willing buyers. In many cases, subdivided properties are sold to developers for town planning purposes.

With an ever growing demand for properties in sought after areas, subdividing a property can offer significant financial benefit to the owner by selling off the various portions.

Building to rent or sell

Another option that savvy investors may choose to take is to subdivide a property and develop each portion themselves. This may involve building stand-alone homes on each subdivided portion or developing townhouses or apartments.

These can then be sold off for a profit, or alternatively, ownership of these new properties can be retained and instead each unit can be rented out in order to gain a passive income from these properties.

Dividing up your assets

In many cases, a substantial property will be subdivided in order for the asset to be split equally between children or dependants as part of inheritance. The size of each portion and what existing or new buildings are included in each will be determined by the specific terms of the will.

Downsizing your home

For some people, moving home in order to downsize may not be the ideal scenario – you might still love the house itself or the area you live in, but the property requires too much effort or expense to maintain. In such a case, you may consider subdividing your property, reducing the garden size and vastly simplifying the level of maintenance required.

Regardless of the reason for the subdivision of property, you will need the assistance of a number of qualified and experienced professionals including a land surveyor and conveyancer. This will help you ensure the required steps are followed correctly and that you have the best chance of a successful subdivision.

Follow Snymans on Facebook for more legal information, tips and news about property.

11626

Recommended for you

Legislative Guidelines

Is the deeds registries system ready for a change?

2920

The final step in the property transfer process is registration of the new title deeds in the Deeds Office. With the recent introduction of new legislation (the Electronic Deeds Registration System Act), we take a closer look at what this means for the registration process.

Read More
Property Blog Articles | Advice | Contractual Matters | Market News
Legislative Guidelines

Court ruling: attorney declared negligent in dealing with client funds

3064

In the recently decided 2019 case of Jurgens and another v Volschenk, the Eastern Cape Division of the High Court made it clear that the utmost care must be taken by attorneys when handling trust money or dealing with a client’s finances, and that failing to do so will have severe consequences.

Read More
Legislative Guidelines

The Electronic Deeds Registration Act

7387

The Electronic Deeds Registration System Act 2019 and the Property Practitioners Act of 2019 (repealing the Estate Agencies Affairs Act 112 of 1976) were signed into law by his Excellency the State President on 2 October 2019.

Read More
Property Blog Articles | Advice | Contractual Matters | Market News
Legislative Guidelines

Money laundering and the Financial Intelligence Centre Act

8385

The sale of a property and the transfer of ownership along with the transfer of significant funds opens itself up to fraudulent activity which is why it is important to familiarise yourself with the risks surrounding money laundering and how the Financial Intelligence Centre Act aims to protect citizens.

Read More
Property Blog Articles | Advice | Contractual Matters | Market News
Legislative Guidelines

Amendments to the Financial Intelligence Centre Act (FICA)

12322

FICA is the Financial Intelligence Centre Act, 2001 as amended by the FIC Amendment Act 1 of 2017 which amendments came into operation on 2 April 2018.

Read More

Need more Snymans content?

Sign up for our monthly newsletter.

4 reasons to subdivide your property

Whether it’s about financially benefiting from land which you already own, splitting your assets between your children or simplifying your life by downsizing, there are a number of reasons why subdividing your property might be the right way to go.

Property Blog Articles | Advice | Contractual Matters | Market News

Selling portions of land

A property can be subdivided into two or more portions, each of which may be sold individually to willing buyers. In many cases, subdivided properties are sold to developers for town planning purposes.

With an ever growing demand for properties in sought after areas, subdividing a property can offer significant financial benefit to the owner by selling off the various portions.

Building to rent or sell

Another option that savvy investors may choose to take is to subdivide a property and develop each portion themselves. This may involve building stand-alone homes on each subdivided portion or developing townhouses or apartments.

These can then be sold off for a profit, or alternatively, ownership of these new properties can be retained and instead each unit can be rented out in order to gain a passive income from these properties.

Dividing up your assets

In many cases, a substantial property will be subdivided in order for the asset to be split equally between children or dependants as part of inheritance. The size of each portion and what existing or new buildings are included in each will be determined by the specific terms of the will.

Downsizing your home

For some people, moving home in order to downsize may not be the ideal scenario – you might still love the house itself or the area you live in, but the property requires too much effort or expense to maintain. In such a case, you may consider subdividing your property, reducing the garden size and vastly simplifying the level of maintenance required.

Regardless of the reason for the subdivision of property, you will need the assistance of a number of qualified and experienced professionals including a land surveyor and conveyancer. This will help you ensure the required steps are followed correctly and that you have the best chance of a successful subdivision.

Follow Snymans on Facebook for more legal information, tips and news about property.

11626