Timing of Subdivision

[Gordon Farkus]

Hi all,

A friend of mine is currently constructing a unit at the back of his PPOR property which will be an IP once finished. He will continue to live in the current PPOR at the front of the property.

Construction has commenced but he hasn't as yet subdivided the property.

Assuming that subdivision needs to happen at some time, can anyone advise when subdivision for a project like this should occur? Should the subdivision have been done before construction commenced or does it not matter as it can just as easily be done later?

I suppose I'm thinking this may be an issue accounting-wise - ie. keeping the properties separate, more easily separating and allocating expenditure, establishing each property's value at the outset, etc. Is any of this relevant?

Thanks!

 

[battler]

Should the subdivision have been done before construction commenced or does it not matter as it can just as easily be done later?

I don't think it matters that much, but you would want to set it out in such a way that services etc don't have to be moved off one property or the other in order to separate the blocks.