I'm thinking of creating a directory subdomain for one of me niche websites. Do you have to wait a few months for decent search engines rankings as if you were starting a new domain/website?
Depends on value of your main domain. I mean if your main domain has PR6-7 and has multitude of indexed pages than your new subdomain will appear in SERPs much faster than a new domain and stay there for as long as your main domain stays, unless you overoptimize it or use other harmful techniuqes that will cause filtering or banning.