The first in a mini-series on property zoning, development & value
Zoning tells you what you use your land for –
big mixed use development with retail, office and res or
offices in existing structures on a historically res arterial.
But it also tells you how you can use your land.
I.e. if you can build more – how much & where.
Both these factors hold opportunity value.
So you and your neighbour have similar pieces of land and you’ve just heard they sold for a ridiculous number.
Your properties are similarly finished, you know he didn’t sell an income (tenant with a lease) and unless you can pan for gold on his land, the numbers just don’t make sense.
Before you send your PA next door to see what they have that you don’t, consider the development or zoning potential they were sitting on all this time.
Not all property has the same rights (zoning) for land use and development.
On top of that, not all zoning is created equal.
The crux is, if you’ve got development rights that you haven’t used, and the project is feasible; it’s a value-add.
This zoning is based on an urban development plan created by town planners – we call this, the RSDF (Regional Spatial Development Framework).
Intricacies aside, the general aim of the plan is:
1. Keep loud & messy industrial on the outskirts,
2. Offices central; and
3. Shops & homes scattered around the city to encourage work, live & play in the same area.
So there you have it – depending on what zoning you (or your neighbour) has, you could be sitting on a bigger opportunity than you thought.
To dig more into your property’s zoning & value, follow our mini-series or set-up a meeting with Kat Woolf.