Zoned light industrial
- Thread starter TMNT
- Start date
What does the planning instrument for the relevant council say. It will normally specify what uses are permissible and what are prohibited. If it is an existing house in light industrial, then provided the house was built legally you would have an existing user right ie the property can still be used for residential while that building is there. Extensions etc might or might not be allowable
so for a resi IP, does the fact that having more then the standard residential options make it more desirable? im considering this as a resi IP, but will be willing to pay say 5% extra if its seen as more desirable
I assume that if I do decide to tear the house down and rebuild, that this wont be possible? let alone units down the track, its a big block at 1500sqm,
It honestly depends on what the individual council allows and doesn't allow.
Without any details or information it's impossible to give any more help.
Why would you want to tear it down, only to replace it with another house, or heaven forbid units.....talk about importing headaches ??
If it is zoned industrial, why not whack a large 750sqm shed on the block and rent it out for a motza with no headaches.
Seek assistance from wiser sources in your local area who know what they are actually doing.
People looking at spending large chunks of money with as little knowledge in the area such as yourself is beyond dangerous. No wonder people lump all that together and call this area of investing "risky".
well, interesting you say
firstly the existing house is pretty derilect,
also I have the option to reno it to rentable standard, get good yield,
and if there is good growth, then down the track I can tear the house down and build units on it, or simply land bank
dont paint everyone with the same brush
I guess the short answer is if you want to build resi units buy a resi zoned allotment. The councils i have dealt with in Vic wouldn't allow resi units on a Light Industrial block but it may be possible depending on your location but I'm sure extra headaches will be included.
You say "more than standard residential options" but you don't have standard residential options as its not resi zoned. You probably have existing use rights and that's it. So i would expect the 5% to be a discount not an increase in value.
Why would you want to build resi units on a LID zoned block? I am with Dazz, if you are going to rebuild, take advantage of zoning and do someting with a higher gross and lower build cost eg some single row concrete tilt up industrial units or a warehouse duplex or a shed with hardstand yard etc etc. Depends what is in demand in your area... but build something good, lease it to a quality tenant and watch the cash roll in while the tenant pays all your outgoings
Well it would all,depend on the area, im only going to rebuild if its worth it,
I need to fully investigate the demand for industrial in this area
I was just seeing if people have bought houses with this zoning and seeing how it turned out
Especially how desirable it was
I'm with Dazz & Dave on this one, if it is zoned 4b (light industrial) and the predominant development around the area is still housing, it will change in the near term with more and more factories being built and the area becoming less desirable for residential tenants.
1500 m2 with a good planner/designer should yield several small units or one/two whopping big ones.
Why would you bother buying an industrial zoning only to build residential?
Yes, the short-term plan may be a quick reno to lease it until you BULLDOZE the block but if the holding costs aren't great, it may be easier to insure it, keep it vacant and hope that vandals burn it down.
1500 m2 with a good planner/designer should yield several small units or one/two whopping big ones.
Why would you bother buying an industrial zoning only to build residential?
Yes, the short-term plan may be a quick reno to lease it until you BULLDOZE the block but if the holding costs aren't great, it may be easier to insure it, keep it vacant and hope that vandals burn it down.
Another vote for building comm on this block.
Just to throw another option for you.... What about storage sheds?
Check this out in my local area for a novel approach
http://www.gumtree.com.au/s-ad/meri...nshine-coast-qld-from-3-30-per-day/1017628458
Another problem you may find the bank will value this as a comm loan and want 30% deposit. I struck this when i was looking for a place for our business.
Just to throw another option for you.... What about storage sheds?
Check this out in my local area for a novel approach
http://www.gumtree.com.au/s-ad/meri...nshine-coast-qld-from-3-30-per-day/1017628458
Another problem you may find the bank will value this as a comm loan and want 30% deposit. I struck this when i was looking for a place for our business.
