Buying a house rezoned to commercial zoning

Have been looking at a couple of old QLDer's that have since been rezoned to 'commercial' I think this means that houses can not be rebuilt should they get demolished etc. It must be rebuilt as commercial property, just wondering what other problems I could have down the line if I went ahead with a purchase if my plan was to use it as a residential/ renovate further. Does the commercial zoning devalue the land much?

 

I'm pretty sure (but I'm not a broker) that the purchase would be under commercial loan terms not resi loan terms. So the LVR might be around 60-70%

 

Purely depends on the demand for commercial property, more often it's worth more than resi if redeveloped to it's full potential.

Why do you think a zoning other than residential is inferior?

Often taking the risk to develop in the first stages of a newly rezoned area are the riskiest, No different to commercial.

 

It seems that most of the houses that have been rezoned are selling for the same or slightly less than the ones still classed residential. The area is mostly full of sharehouses/ short term let and backpackers, so maybe the rezoning gives less options in this capacity? And or as mentioned above you now have to put down 30% for something you potentially wanted to use as a house.

 

Just check the land size is sufficient to rebuild commercial if necessary.

Case in Brisbane years ago, old house on tiny rezoned commercial block in Albion. House falling down, not allowed to build a house as not residential. Block too small for anything else. Owner rebuilt the whole house from the inside out as a renovation, replaced everything, ended up with a completely new house!
Marg

 

haha thanks will check. Also I spoke with another place for sale in the same street, asked if it was commercial and they said it was commercial but that the owner had recently rezoned it to residential for lower rates, I didn't know this was possible. I think I need to find out more about the laws etc. but not sure who I should ask? Council?

 

Is anyone able to confirm/ give more information about this situation? Also the costs to rezone back to residential?

 

Correcto mondo!

 

If commercial is highest and best use, you'd be nuts to rezone to residential.

 

The problem is its basically a normal house/ possibly a share house like most of the other houses in the same street/ nearby.

 

It might have been rezoned but unless the use stops then you can still renovate and extend

 

The only problem with this is ,once rezoned then the price will be factored into the sales price and will be very hard to get any $ percent discount to its value..

 

OK so apparently I got it wrong after speaking to the council, the land is zoned residential, but has been 'classed' commercial, I didn't realize they were 2 different things and am confused now. Will this still affect LVR?