Survey Strata Subdivision vs. Built Strata Subdivision
Investors and developers are used to completing a subdivision within 6 months for a few projects, while for the complicated ones, they suggest a time frame that can extend to 18 months. Although the surveyors professionally assist in this subdivision project management yet the investors and developers have a time frame response to follow that is different for each project. Why should this be?
Well, the main reason for the time frame variance is the way how the property is subdivided. Two types of subdivision project management are Survey Strata Subdivision Development and Built Strata Subdivision Development.
Survey Strata Subdivision Development is the most common type, wherein an individual land parcel occupies a title. Survey marks define the titles or the land parcel, but the buildings are not shown. In this type of project subdivision management, approval is needed via the Western Australian Planning Commission to get it done. Generally, this development indicates you are holding some common property, say either a driveway or shared services like a sewer.
Once this development is done, a new title will be issued that will be taken to the bank for refinancing, if cash at hand is not available for construction according to plans. So about 9 – 12 months will have to be given for the actual subdivision and create the new titles. Construction will have to be done potentially, hence another 6 months will be taken up depending on the project size, location and builder. Therefore a total of 18 months goes into the process.
When the investors and developers report completing the 6-month subdivision, then it undergoes the built strata process. Herein, as the owner, you receive new titles when the build is completed and the building makes up the property’s boundaries. This process has to be approved via the Local Council on the building plans. Once approved, and the permits have been issued, it is time to straight start the construction. After the construction is completed in approximately 6 months, based on its size, location and builder, the Council views it all and ensures the construction has been done in accordance with the new titles applications for the titles to be issued.
Since the investors are involved, so time is money – when this is the case then, there is a high possibility 80% of developers will go down the Survey Strata subdivision process. The reasons, with lending being, tightened and for the Royal Commission into the banking system, several financial institutions will not be lending for constructing more than one dwelling on one title till you have acquired enough equity or cash to be put into the deal.
The reason is in case, anything would happen to you or the builder, then the financer will need to sell multiple properties on one title to recoup the funds. This becomes tough and risky with a clear indication of funds shortfall.
Alternatively, they prefer those who take responsibility for completing the survey strata subdivision, create new individual titles and start constructing on these.
So, at the end of the discussion, we would point out that if the investors have cash or own their property, they should outright the built strata process. This is because of the reduced time frame. But for those who do not hold, they will have to be aware the development will take up a minimum of 18 months. This is all about the differences between the two types of subdivision project management.
