Hi,
I have heard about people taking advantage of re-zoning by buying land which they suspect will have a zoning change, and then either developing or simply on-selling the land after the new zoning allows the land to be used for something more profitable. And they may have an active (through application to council) or passive role in the re-zoning process.
What I'd like to know is how does one go about researching this?
Is it something that the average investor can do, or is it only really the Peter Spann-type's or institutional investors?
What is a rule of thumb in the "valuable" order of zonings?
I understand higher density residential is more valuable than lower density residential, but what about other zonings, including residential vs non-residential, business vs industrial, rural vs residential?HJ72
Happyjack72,
It would be good to have a crystal ball for this scenario.
I have a friend who has a property and the market value on a domestic residential sale would be in the order of $600,000.00. The zone has now recently been modified as MIBA, or Mixed Industry Business Area. This is a more elaborate sounding zoning title, as compared with the usual residential / commercial / industrial, but is quite similar. They are now in discussions on a sale price of over $2.5 M.
Your local council should be able to provide information on zoning classes and restrictions, but wouldn't think they would be able to say if they are planning on re zoning the land, otherwise we all would be able to make a killing.
On a similar topic, I can remember when I was living in England a few years ago that there was a TV property show about a bloke who bought land in farming zones in close proximity to city / town centres, and waited until they got rezoned due to population and migration. He made an absolute killing.
Good Luck, and let us know if you find the easy way to the Holy Grail……LOL
Cheers,Bundyanimal
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