Reasons to Consider Subdivision of Land for Retirement
Thinking about retirement is something that may lead you to financial planning, end of life planning, and making sure that your assets and funds will cover you through your twilight years. This tends to bring up investments and making the proper financial choices for your future. One of the choices that you can make deals with subdivision of land. There are some benefits to this in regards to the property you own, and here are some of those benefits.
Easier to Sell
One of the biggest benefits of doing a subdivision of land for retirement is the ease you give yourself to sell the land off. When you first have the land subdivided, you will be able to have it appraised as single properties or lots rather than as a whole. This lets you know how much you can get for each plot should an emergency occur where you need to liquidate your assets. This is a benefit, because in most cases you would sell the property as a whole rather than just smaller plots, allowing you to keep your home and still fund your retirement plans and lifestyle.
Reduction of Mortgage
If you still have a mortgage, you can help reduce that mortgage by a subdivision of land. Keep in mind, you must own the land the house you have mortgaged is on. In those cases, having a smaller amount of land associated with the home can reduce the mortgage of that home. You will still own the other lots of property, so you can sell them off later while still reducing your bills now to build your savings accounts. It serves a dual purpose of saving and planning if you are in this particular real estate situation.
One of the benefits that some people notice about subdividing their land is the increased value of the property. For example, your home and property may be worth around $100,000 GBP. When you subdivided the land into lots, you may find that you are getting more per lot than what it is valued at as a whole. This means you may go from $100,000 of worth for the whole lot and home to over $200,000 or more depending on the current prices for land in your area and the way the real estate is shifting at the time.
By keeping these benefits in mind, you can make choices with your property that would allow you to have last minute or emergency funds during retirement. If you think this option may work for you, contact your local property agent for assistance.