Change zoning C1Z back to residential

Discussion in 'Development' started by JamesG, 12th May, 2020.

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  1. JamesG

    JamesG Member

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    Hi all I have a question about zoning. In mid 2019 my wife and I purchased 1 of 3 properties offered for sale in the heart of Hastings VIC from the now failed Steller Property Group. It was rezoned to C1Z which is mixed use commercial having been zoned previously as residential.

    The property still has a 3 bedroom house on the block, however the plan was to demolish this and the houses on each side to make way for an aged care clinic the developer wanted to build as part of their aged care strategy on the Mornington Peninsula.

    My question is can we have the zoning changed back from mixed use commercial to residential?

    The current zoning brings certain restrictions that mean we can renovate/extend the existing house to live in, but no knock down rebuild unless the first floor does not exceed 2m street frontage for residential use.

    I have a strong emotional desire to live there in a nice renovated property close to town, but financially if I could knock down and redevelop I would stand to make more profit. It’s rented out at the moment for $340.00pw.

    Does anybody have experience with this sort of project? I have attached some pictures below of the property location relative to town centre (and ocean!) along with the zoning overlay. Our property is in the centre of the 3 that were offered.

    Many thanks,

    4194C30E-D625-481E-8A75-D0570733F566.jpeg 96E0E9C9-A950-4533-85BB-848CE09A127E.jpeg 1B174942-6DB4-4773-8DC3-BB4FAE61C6D7.jpeg 26712705-84F0-453F-B7D5-AE0ADE769E53.jpeg A3A1C28A-C534-4630-8EC7-4C3DC5FC35BA.jpeg James
     
  2. thatbum

    thatbum Well-Known Member

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    I'm confused - you say its worth more as residential? I would have thought that was highly unlikely.
     
  3. JamesG

    JamesG Member

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    Thank you for your reply. The property is still in an all residential area, and too far from the actual current retail precinct to warrant development of a shop or something like a surgery.

    Given it’s proximity to the foreshore and centre of town, originally our plan was to renovate and extend in a few years to live in with funds from the sale of my current house located on the outskirts of town. But now we think we could look at a knockdown rebuild, possibly 2 town houses or duplex as others in the surrounding streets have done.

    We have time, it’s rented out now and we put in a substantial deposit being commercially zoned to get the finance and keep it near neutrally geared. The zoning however as it stands would prevent this.
     
  4. thatbum

    thatbum Well-Known Member

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    But both those plans make little sense if you aren't developing the property to its best and highest use. And I'm still surprised if that is apparently a knock down rebuild, or duplex...

    What was your original strategy with this purchase?
     
  5. JamesG

    JamesG Member

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    Originally to renovate/extend and move in once the loan is paid down in a few years by tenants. I grew up in Mount Martha, and in Mornington similarly located properties with the sort of proximity to town centre and ocean are well ahead of what I can afford.

    Now my wife and I are trying to see what our options are if we take the emotion out and look at it purely as an opportunity to increase return on it.

    Our primary residence is in a less desirable (rough) part of town further out but it was super cheap 10 years back. If we sold this in 5 years we would have enough to renovate the investment property and move in with a super low mortgage. But we are undecided if financially if that’s the best way to go.
     
  6. JamesG

    JamesG Member

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  7. thatbum

    thatbum Well-Known Member

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    Okay so it doesn't sound like you're really developing for profit then? Or you've now decided you want to?

    If its the latter, then you need to do some feasibilities don't you? If its the former, then maybe you need to get some planning advice?

    You might not need to "change the zoning" to get what you want (or something similar) approved.
     
  8. JamesG

    JamesG Member

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    The former was originally the plan, and we can certainly do this. The later is what we would VN like to explore.
     
  9. lixas4

    lixas4 Well-Known Member

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    Rezoning is a pretty long process. Given you would be one lot within that section of commercial lots, rezoning just yours could be detrimental to the intented use of the other abutting commercial lots.

    It would be interesting to see whether what you want to do would fly. Have you called the strategic planning department of mornington council to see what they think?

    There are two victorian based town planners on this forum that i know of, they are @Tufan Chakir and @James Cavill. They will probably have experience with rezoning.
     
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  10. JamesG

    JamesG Member

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    Thanks for the reply. I was thinking of approaching the other owners and see if rexoni g together back to residential might work. ALOT of small developers were looking to buy all 3 for townhouses but the zoning knocked that over as welll as the bottoming of the market. Possibly the timeline did t suit resining for a developer who likes to flip em fast?
     
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  11. Tufan Chakir

    Tufan Chakir Well-Known Member

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    Start with understanding the constraints (and opportunities) under the current zoning
    Explore existing use right provisions and what you might be reasonably able to achieve using those (residential refurb etc)
    Talk to Strategic Planning - understand why the zoning changed
    The chance of changing it back, I suspect, will be remote.