Hi everyone,
i’m looking at an IP located about 1km from CBD of a regional city (about 25,000+ people), and it is also 3 blocks from the riverfront where a lot of further development is in planning stages.The house backs onto industrial sheds/factories etc. Their are about 10 other houses in the street and houses in streets adjoining it on the city side.
It is zoned industrial and residential.
I won’t be using the land for any sort of commercial purposes.
What do you all think?
How does this zoning generally affect prices over time?
Thanks
grego
Yes Grego I would. An important factor to me would be the land content because I would be looking to convert the property to industrial when I could.
Leaving it as residential may cause some problems depending on the type of industry close by (noise, odours).
You would have to assess the pros and cons of the particular property and have a plan in place to get the most value.
Cheers
JeffThanks Jeff,
Land content is about 700m2 with a good portion of that in the backyard backing onto industrial use sheds. There could be the option of leasing some of this land to them as the backyard would still have a bit of room.Why convert to industrial asap? Is there better resale value for land that size when sold as a business compared to as a residential house? I will pay what the vendor is asking once i figure out how this zoning issue may affect it…
Originally posted by grego:Why convert to industrial asap? Is there better resale value for land that size when sold as a business compared to as a residential house? I will pay what the vendor is asking once i figure out how this zoning issue may affect it…
I just prefer dealing directly with businesses that have a vested interest in keeping the property in good order. They tend to be longer term, pay the outgoings and look after the property.
I would convert as soon as I saw an opportunity to add value. There are also many businesses that require offices in industrial locations. If the property is strategically placed and there is a shortage of industrial space then you may do alright.
Think outside the square
Cheers
Jeff
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