unlocking land equity through rezoning

T

Timkot

I am negotiating/buying block of land for say 300 grand, it is 5 acres currently rural zoning. I believe it will be in the next few months become residential according to new town zoning plan. So for developments sake could be cut into about 20 residential blocks or more, but just use 20 for this.

The average sale price for block of residential land in area Is about 110 grand. What I am hoping to is unlock equity(value) in the block through a revaluation of the block by the bank once it is rezoned.

What I am asking is for those who know, can I expect a higher revaluation on the land once the zoning is residential and if so what is peoples experience on increase amounts, guestimate wise

Thanks

Tim
 
Hi

If you pm me the address am happy to have a look and see if there are any potential issues for the rezoning.

D
 
And doesn't it mean rates will go up significantly also for states that rely on land value to asses rates? May be something you need to factor in with holding costs.
 
On the same topic as the original poster, I have recently purchased a house over two x 400 sqm lots. It is currently zoned Low Density Residential (suitable for houses only) but will soon be rezoned to Medium Density (which supports unit development up to 4 storeys i.e. 10 units). Can I get the property revalued once it's rezoned and then refinance the loan to use the additional equity for another purchase?

Cheers, Liam
 
Thanks folks, The cooloola shire is doing the planning again. Not concerned with rates as I know how to deal with the council over that.

Gotta agree on price first so we shall see, naturally I don't mind paying for some future value but the questions is always how much.
 
Hi Ideo

1. How long is a piece of string.
2. Depends on the individual Council.

Longest I have run is just over 12 months, shortest 1 month. I would need to look at what is the basis to be able rezone.

My Sunshine Coast Office does Cooloola Shire so if I get PM'd an address will see about time frame.

D
 
Hi TImkot

My SC office does Cooloola Shire, if you PM me the address I will get them to have to a look and then give feedback through here so that others may benefit as opposed to a private conversation (any identifying info of the block would not be shared to protect your privacy)

D
 
RPI said:
Hi Ideo

1. How long is a piece of string.
2. Depends on the individual Council.

Longest I have run is just over 12 months, shortest 1 month. I would need to look at what is the basis to be able rezone.

My Sunshine Coast Office does Cooloola Shire so if I get PM'd an address will see about time frame.

D
Click to expand...

Lucky man.

Ours have to go through the Gateway process with the NSW Department of Planning and Industry.

My personal one is up to 15 months now. But there has been a number of issues surrounding threatened species and sewer constraints. Should be through the next stage of the gateway in about 1 month, then about another 4 months to approve the final stage.

This is not unusual.

I have had a resi to high density resi rezoned in a much shorter time though.
 
You might want to consider the rates issue. We had a 5 acre lot thet was rezoned to res A and rates went from $1500 to $12 000!!!! Luckily we were living on it and could argue that it's value was only as a PPOR at the time.
 
Have a contract on the property with agreed price so now we shall see what happens. I understand the proposal in my area of purchase is to allow blocks down to 500 sqmeters. There is sewerage on the other side of the road but not mine, the previous owners paid 5 grand to get town water from the other side of the road.

I personally am not wealthy enough to do a subdivision nor do I want to as the block is meant for lifestyle living and naturally enough is a bit like a super policy. Although a rezone will unlock some equity for other things, at least that's the hope

thanks
 
Hi Tim

You can always do a staged subdivision. 1st stage is those blocks you can flog without building roads.
 
I spoke with Cooloola/Gympie council today. They advised that the block I am purchasing will be rezoned to residential with the ability to go down to 500 square meter blocks. They tell me at this stage it will be around May/June 2013
 
Timkot said:
I spoke with Cooloola/Gympie council today. They advised that the block I am purchasing will be rezoned to residential with the ability to go down to 500 square meter blocks. They tell me at this stage it will be around May/June 2013
Click to expand...

Lucky lucky man! Any more similar opportunities available in the immediate surrounds?
 
Call the Gympie council and have a look at the Realestate.com.au site, they, the council won't give you a copy of the plan as public consultation finished last year, but they had no problem telling me what areas I asked about. As the council fella said new zoning will happen in May/June so there is still opportunity out there. Have a look on the eastern side as that is where I have bought. There are lots of acreage blocks around, its just a matter of exactly where they are and if they are gong to be rezoned.

What I will say is that the Gympie area has a lot of potential as there are numeorus opportunites to make some money with land subdivisions especially in the area of cutting a block of the land off, or say cutting 5 acres into 3 lots and that sort of thing. There is lots of land zoned rural residential let alone anything else.

I intend to build on my block and live there and see what happens in the future, but If I can just talk the wife into buying other stuff because there are some super bargains around Gympie, when taking into consideration the future.

For eg, http://www.realestate.com.au/property-acreage+semi+rural-qld-veteran-112302995

The above home is on 5 acres and at least until recently had approval to be cut into 3 blocks, its now under contract but when you work it out, its a genuine bargain. (ps I have nothing to do with it, just seen it and have worked out value)
 
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