Advice for buying warehouse

Just wondering if the experienced commercial property investors can help. A family member wants to buy a industrial/warehouse (first property) to live in. sold with vacant possession. What are the pros and cons or buying a commercial property to live in?

 

Being allowed to reside in the property legally is a good start.

Commercial is generally for conducting business.

pinkboy

 

Thanks @pinkboy ...appreciate this alert!

 

Why would someone choose to live in an industrial property? Someone where I work was doing it but he was renting the property and decided to live there for a while. Landlord was ok with it. Hard to believe someone would buy one though just to live in it?

 

There are older style warehouses that you can partially or fully reside in. Some are in a commercial zoning and others may be located amongst residential buildings.

What exactly does the person want with the property primarily. Is it just residential or is it to run a business and reside alongside that business.

 

price for one and location/convenience.

 

Yes, residential primarily and business to run alongside secondarily.

 

As pinkboy said, legally you are not allowed to live in properties zoned commercial. The reality is though who is going to care? Unless the person is a pest no one is going to report them and it isn't like the council go around and check if people are living in them. As I said, someone in my complex was doing it and it was actually a good thing for us - free security service! Someone was always around keeping an eye on the place. The guy who owns the whole complex was living in his one too for 6 months when he had a bust up with his wife.

 

Thanks @Biz, yes seems like a lot of people are making homes in commercial zoned properties that it didn't cross my mind it was against regulations. This one has kitchen, nice bathroom/shower facilities.

 

But it only takes one.

 

There are occasions where someone is able to legally reside in a commercial property

 

@Chilliblue Usually only if a caretaker's unit is permitted under the zoning.

Caretakers unit would have to comply with BCA for a dwelling (ie include smoke alarms) but would also have requirements for exit/emergency lighting, FHR/Hydrant etc

 

I know that Scott that's why I countered the myth that you cannot reside in commercial properties. I manage several such properties.

You also have older commercial properties in now predominantly residential areas that some councils will allow part residential.

You need to know what the council regulations are for the area that you are interested in and where they allow.

Rarity yes but not a unicorn.

 

I've known people who lived in industrial areas, in warehouses or whatever.
One had a caravan inside a large area.
As above, not sure on the legalities of it in different states.

 

Asbestos.

 

Assuming you are in Vic, what is the zoning?

If you are in an Industrial zone (Ind 1, 2 or 3) residential accommodation is prohibited except with a caretaker's permit. However those permits are hard to obtain and Councils usually require a good reason for someone having to live on site. "Convenience"usually isn't enough.

If the zoning is Mixed Use or Commercial 1 then there are more options. Commercial 2 would also usually be a no go.

I have seen it fairly often, esp middle aged men going through a divorce who set up a residence in their warehouse. The main issue I have found is insurance esp in a unit complex. You burn the place (and neighbouring units) down cooking your dinner and the OC insurance may be void and you end up liable for the lot.

 

I remember some industrial units advertised in Byron bay a few years back that had a mezzanine over the industrial unit. They had a balcony out the front and full living quarters with bathroom and kitchen. They were not advertised as a place to live but they were certainly trying to give the impression that it was possible.

7 Grevillea Street, Byron Bay, NSW 2481 - Industrial/Warehouse for Sale #501392035 - realcommercial.com.au

In our small town the industrial area has quite low vacancy rates and many of those industrial spaces have people living in them. It may be illegal but the authorities turn a blind eye to it, and its not unheard of for people on low to no income to be living in storage units.

 

Thanks @Ian Macleod Yes it's in Byron and apparently many people are living in these industrial warehouses and the ads do seem to imply it esp with the furnishings. @Dazedmw, yes will need to check the zoning.

 

Also be mindful that even if purchased with approval of a caretaker's unit or similar or without, that ceiling heights for habitable rooms meet code. 2400mm is a good start. Best to check with council whichever way the intended purchase goes.

 

I know a divorced guy who celebrated his singledom by buying an industrial shed. He had a large toy collection - as in motorbikes, cars, a boat etc etc. He reckoned that way he could live next to the things he truly loved.

Some zones are easier to live in then others. You can be kicked out quite quickly though if you do it without approval.