Why Land Divisions are Essential for You

Posted on: 9 April 2019

Land division involves the act of dividing the land into smaller pieces for either the purpose of selling or development. After this is done the new plots are now known as subdivisions. One of the main reasons for land division is that it helps keep the community organised. The records are kept by government organisations and can be used as proof of land ownership should any disputes arise. It's a process that is tedious and exhausting; however, knowing what to expect during the process makes it easier. Sometimes land divisions are done because the owner wants to leave a portion of their land to their beneficiaries as inheritance, other times maybe because of financial hardships brought about by non-avoidable factors like a sickness. Some of the importance of having your land subdivided is as stated below.

Greater interest

What do you think of when you hear interest? Extra earned cash of course. The land you own is not only an asset but can also be used to generate income. Sometimes, the landowners prefer to keep the property for personal use, or preserve it for future use like subdividing a small plot to your siblings for inheritance. The most important part that most landowners don't think about is that the existing land can be partitioned to turn the property into two or more assets for financial growth. The property can also be used to acquire loans among other things as collateral.

Greater flexibility

Subdividing your land does not necessarily mean that you sell-off the whole of your property; you can, of course, retain some of it for rental income. Land subdivision gives you the best of both sides. This means that you get to sell a piece of your land for immediate cash in cases of emergencies and retain the remaining plot for ongoing cash flow. The second option is best utilised if the residual scheme is developed into commercial houses or if the owner puts up his form of business on the land. Mostly this can be cash crop cultivation or just renting the remaining property to an interested customer. However, land development after subdivision is the most recommended option since there is enough capital earned from selling a piece of the area that can be used to expand the other. It's important that before you decide to subdivide your land there be a substantial reason because the process will cost you.


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