Vic - Business Zone 3 - is this a problem for banks?

A colleague of mine is looking at an apartment in Abbotsford which is Business Zone 3. Is this likely to cause any problems with banks?

Cheers
Jonathon
 
Yes the zoning of a property can cause problems. It really depends on the implications of that zoning. I am not sure which state you are referring to as there are a few Abbotsfords in Australia.

As a general rule residential lenders would want to see the following:

  • Property has no restrictions on being used for residential purposes.
  • Property is being sold as a residential property, i.e. it has no commerical use at present / planned in the future.
  • Valuer values it for it's residential potential only. As in how much would it sell for if it was sold to a normal mum & dad buyer?

In that case it would not be a problem. Sometimes there are weird zonings for units that are above shops. Maybe this is the case for this one? Speak to a good mortgage broker and they can help you.
 
Residential purpose is an allowable use, without requiring a permit in a BZ3 zone. It shouldn't be an issue with alender.
 
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