The fourth in a mini-series on property zoning, development & value
Different zoning means different land use and development rights.
As a property investor, you’re not only investing in the land, you’re also investing in its zoning.
The standard bunch
Commercial, Bus 1 – 4
Bus 1 is the jackpot of commercial zonings because it pretty much allows you to do anything you want. Any general business use (incl. shops) goes.
The rest of the business zonings aren’t as cool. They restrict the type & amount of businesses you can have in an area.
Bus 4 is the most restricted – only offices (sometimes with res).
Residential, Res 1 – 3
With res, the higher the zoning level, the more dwelling units (du)/hectare (ha) you can build.
So stands with 1 home on them are generally Res 1 (1du/ha), whilst clusters & townhouses are Res 2 and up.
Res 2 = 10 – 20 du/ha;
Res 3 = 21 – 40 du/ha;
Res 4 = 41 – 120 du/ha
The lar-dee-dah bunch
The new cool kids on the block are all about green living.
A blend of res + office + retail = live + work + play in the same area.
Less road rage. More fine wining & dining.
(see Waterfall City, Dunkeld Precinct & Stein City)
The headmaster’s favourite.
This zoning’s got permission (consent) for a particular use, in addition to its existing zoning.
So Res 1 with consent for offices means Res 1 rights, with permission to put offices in existing structures (the house).
The No-Name brand of zoning that covers any land use that’s not vanilla.
I.e. it’s made-to-order for your property’s land use.
The nitty-gritty is…
The more you can do with your land, in terms of expansion or use, the more valuable it is.
So when acquiring your next property, make sure you understand what zoning you’re investing in. Specifically, whether it suits all aspects of your strategy & allows for the growth you foresee.
And if you’re not sure where to start, start with giving Kat Woolf a call.