In Australia options are a rarity. Most developers or budding investors use subject to when making money on land. The land is generally tied up by using a  variety of conditions in the contract. This allows them to prolong or delay settlement until title changes from the government have been approved.

Rezoning or subdividing land can be quite frustrating and long, the process depends on who you deal with and how you handle them. It will also depend on the position of the land that is going to be subdivided (it is no good trying to subdivide land out in the middle of no mans land!). There is great potential for high profit margins in this process if you have the stamina and patience for it. It also allows you to hold land cheaply and if anything doesn't go according to plan then you can always cancel the contract on the grounds of one of the clauses(subject to).

This method is also very handy in residential contracts if you are looking to do a flip transaction. I would advise if you are just starting out to go and work for a land developer before starting on your own! The reason is to ensure that you find out any pitfalls and learn all the possible clauses (subject to) that can be used.

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