The Investment Benefits Of Rezoning Property
According to a paper on planning and zoning reforms released by the Australian Productivity Commission in March 2021, zoning and planning can substantially impact the economic activity within a given area.
Knowing this, one way you can make your assets work harder for you is by rezoning the land you currently own or purchasing and rezoning land as a long-term investment with the help of a rezoning property consultant.
With the help of your local town planner in Melbourne, you can turn rezoning property from a step in your town planning process into a notable investment for the future. Read below to find out more.
What is rezoning?
Zoning laws apply to the property within those zones and restrict what you can do with the property. For example, if your property is in a heritage area, there are restrictions on what can be built and what designs can be made by planners. Or it could be that no further developments would be allowed on the land.
This is where rezoning comes into play. Rezoning is the process of converting a parcel of land from one type of land to another (commercial, residential, industrial, or transitional). As a result, rezoning allows you to change what you can do with the land and property to better suit your needs.
To rezone a property correctly, you must apply to your local authority’s relevant planning division. You will need a compelling reason and the necessary documentation to rezone a parcel of land. After your request is received, property neighbours and other relevant public members will be notified and may object as they see fit. After it clears that hurdle, your request will be reviewed by a panel of local councillors and town planners, who will decide whether it should be approved or rejected.
Of course, rezoning is not without difficulties and may not be allowed in some situations. As such, if you plan on rezoning your property, consulting with a rezoning property consultant can save you time and money from attempting to rezone an area that may be impossible to change.
Why invest in land and property?
Underdeveloped land or “raw land,” which refers to land without property present, is often considered a wise investment in terms of value. Once a piece of underdeveloped land is owned by an investor, it cannot be taken away or destroyed and needs little maintenance to be kept in good condition, all the while increasing in value.
Land is also a cheaper investment than real estate as you do not need to worry about mortgages or repairs. The lack of insurance costs and property taxes also makes raw land relatively inexpensive. Therefore, having a piece of raw land that you want to rezone as residential property, for example, can be seen as an investment benefit.
What’s more, the competition around purchasing land is less intense than if you were buying into residential or commercial properties, making purchasing land now to build property on it later is a great investment option for those with a limited budget.
What are the investment benefits of rezoning?
As the population increases, there will be a demand for more housing, public amenities such as schools, shopping malls, medical facilities, and much more. With a renewed interest in urban living, the right developer can transform what was once an industrial area into upmarket living spaces.
Once a piece of land is rezoned and available for sale, it becomes a more lucrative prospect with its value increasing. For example, when it was rezoned, agricultural land included in Melbourne’s urban boundary went from $35k to $300k per hectare.
You can also rezone run-down or underutilised properties that you have bought for cheap and sell them to a developer. The developer can then subdivide the land and build industrial or commercial properties on it, bringing new life into the area and reaping you a financial reward. Banks also prefer land with buildings already present if you are looking for an investment or home loan.
Need help with rezoning land or property?
Given how lengthy the rezoning process is, it is important to get the right assistance if you plan on going through with land rezoning efforts. There are a number of town planners in Melbourne which can help with your rezoning goals, so be sure to consult with them for your land rezoning needs.