Rezoning: how it benefits your property investment
Why rezone a property?
Rezoning property is a method of increasing the value of land and buildings by changing their use. It can be done to create a new commercial or residential use, or even change the type of land use from industrial to residential.
Zoning regulations are rules created by government agencies or private organisations such as councils or associations with specific aims like protecting agriculture from encroachment by suburban homes or preserving open space around historic landmarks.
They can also control where certain types of businesses can operate within each municipality — for example, they might prevent retailers from opening up shops within a commercial district unless they pay fees that cover additional services such as garbage collection services and street maintenance costs.
This process can be expensive and time-consuming, but there are many advantages that come with rezoning property, including higher returns on your investment.
It involves amending our building codes and zoning laws so that new construction projects can take place without needing approval from various authorities before proceeding with planning activities such as obtaining permits from city officials.
There are many reasons why you might want to rezone your property.
It might be to allow for units to be built on a block of land previously only able to be used for a single-home property. It may be to take better advantage of the block of land to create a duplex, or to allow the land to be used for commercial purposes despite it previously being designated for residential use only.
The process of rezoning
It starts by filing a formal application called a planning proposal to your local council which is the body that has the power to regulate land use, including zoning and development. They will be able to grant or revoke permission for development on your property, as well as approve plans for new homes and businesses in your area (if you live in an urban environment).
Planning proposals must state the objectives or the intended outcome, explanation and justification of the said objectives, and contain a map with detailed information about the proposed zones. It should comply with Section 55 of the Environmental Planning & Assessment Act 1979, guidelines from the Department of Planning, and all zoning rules applicable to the property.
The rezoning process will also require a written document which is a contract that outlines the terms of your rezoning agreement. The two main documents are a Letter of Agreement (LOA) and a Deed of Grantor's Title (DOT).
Getting a property rezoned can take anywhere from six months to two years, depending on your location, so it's essential to plan ahead with an experienced lawyer who can guide you through this complicated process.
Regulations to keep in mind
Zoning regulations are determined by local councils and determine how the land can be used. The purpose of zoning is to protect the community, environment and property owner in terms of health and safety concerns.
In order for your property to be rezoned for investment purposes, you must meet certain criteria which include:
- Your property must have been built on land where there has been no development before (this includes new construction as well as renovations).
- You cannot own more than one home on the same block unless it’s an exception approved by the council.
As a property investor, you will often be required to make decisions about the zoning of your investment. Zoning is the process by which governments decide what type of land can be built on and how much space it needs to allow for construction.
Zoning maps provide an overview of all the surrounding areas regarding their zoning regulations, including whether they allow residential or commercial development (or both).
These maps show where there are no restrictions on building heights or lot sizes, but they may also indicate that certain roads need to be kept clear for emergency vehicles if you’re looking at expanding into new territories.
The type of information contained within these maps varies depending upon where it was collected from. However, most contain important details such as:
- How many units each block has been allocated for residential use;
- What types of buildings can be constructed within that block; and
- Which laws apply when building something new on top of an existing structure — for example, if someone wants more space than allowed by law but doesn't want their neighbour's house torn down entirely
Rezoning: a lucrative investment opportunity
Property rezoned for residential can be a lucrative investment opportunity. To make the most of your property, it is important to ensure that you are aware of the different zoning regulations that apply to the area where your property is located.
There are several ways in which zoning regulations can benefit an investor:
- A local council will often require land owners to obtain written documentation from them before they can sell their land by way of an official registration process. This documentation includes details such as how much space each plot has and whether any buildings have been constructed on them; it also includes plans showing what type or model house/buildings will be built on each plot as well as information about whether there are any restrictions placed upon sale date (e.g., maximum height).
- Zoning regulations also dictate how much interest rate should be charged when purchasing residential properties with no mortgage finance involved; this means low-cost savings for investors who want access to this market segment but don't want too much money tied up until after purchase day!
The process of rezoning property may take several months to complete, but once it has been approved by city officials, you can expect to see your property's value quickly skyrocket within a short time frame.
Conclusion
We hope this article has given you an understanding of rezoning property. As always, the best way to understand the market and find out what works best for you is by asking questions!
