Living in commercial 2 zone?

Discussion in 'What to buy' started by jakc, 28th May, 2021.

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  1. jakc

    jakc Well-Known Member

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    Vic - Geelong. Spotted a good place but realised it’s in commercial 2 zone.

    Agent mentioned “can be used for residential use, and it can continue to be lived in and used for residential purposes. Currently, there are people living there. Please note that if the property is not used for residential use for 2 years, then it can no longer be used for residential use”

    Have contacted council to find out more, but lockdown means answer might take some time.

    Am I able to reside in a commercial 2 zone? I imagine starting up a side business with a ABN might not be a workaround?
     
  2. jakc

    jakc Well-Known Member

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  3. thatbum

    thatbum Well-Known Member

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    Probably on the basis of a continuing non-conforming use.
     
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  4. Stoffo

    Stoffo Well-Known Member

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    Caretaker residence ?
     
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  5. Scott No Mates

    Scott No Mates Well-Known Member

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    Are you also prepared for the higher rates, insurance, water service charges that comes with the commercial zoning?
     
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  6. jakc

    jakc Well-Known Member

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    I am actually ok with that aspect. It’s more the legality of being able to reside there. The link above indicates to me that the answer is no. Not quite sure how the current tenants are blagging it?

    The caretakers option is something I’ve looked at in the past. This time I would not be operating a business at the address, not for al least a few years.
     
  7. thatbum

    thatbum Well-Known Member

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    Did you follow what I said?
     
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  8. Scott No Mates

    Scott No Mates Well-Known Member

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    I'd suggest confirming the existing use rights or checking council archived Development Approvals.
     
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  9. jakc

    jakc Well-Known Member

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    not really. Will do some googling around “continuing non-conforming use.”

    I’d assume if I want to reside there, I can’t as the zoning prohibits it? Just because existing tenants are non-conforming, I’d assume I can’t just move in and continue to live there.

    will report back what GCC come back with.

    //edit
    sounds like nonconforming use is an exception. Will ask agent to confirm.
     
    Last edited: 29th May, 2021
  10. Scott No Mates

    Scott No Mates Well-Known Member

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    The agent will tell you what will sell the property, it's not up to them to investigate and confirm.
     
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  11. Frenchie

    Frenchie Well-Known Member

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    You could set up a business and live there as caretaker.
     
  12. jakc

    jakc Well-Known Member

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    Have been considering this, but timing not quite right for getting a business plan together for a legitimate business.
     
  13. jakc

    jakc Well-Known Member

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    "I followed up with the council and as long as someone continues to live there, then it can remain a residence. It's called Existing Rights meaning as long as the 2 previous years the use of the property hasn't changed then it can be used as a residence."

    Agent reported the above.

    Just had a call with a planner at GCC:
    • If agent/vendor can provide records that land has been used as residential for last 15 years, this will give you confidence that you are eligible to apply for Existing Use Rights (e.g. rental records, council rates, etc)
    • GCC have no knowledge of any existing rights on the property. We can see it had a business registered against it back in 1979
    • Mentioned that a problem would only arise if a complaint was made about you living there and you were unable to prove Existing Rights.

    Thanks for the feedback so far. I will need to do some reading up on Existing Rights. @Scott No Mates - you mentioned to check ER. Any insights into what to make of the above info? I will be asking agent to see if 15yrs of residential usage can be provided, but would be very surprised if this can be provided.

    If the Council have no knowledge of the Existing Use Rights on the property, I assume the vendor never applied to get a certificate of compliance for this.
     
    Last edited: 31st May, 2021
  14. Scott No Mates

    Scott No Mates Well-Known Member

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    Freedom of Information/GIPPA request or check their website for DAs or have your solicitor requisition the DA etc from the Vendor if you are under contract.
     
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  15. Frenchie

    Frenchie Well-Known Member

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    I am not sure it has to be a viable business ;)
     
  16. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    It's commonly known that you cant live in commercially zoned premises although people still do it and as stated above if no one complains you will be sweet. If you get a complaint then have a plan B in place.

    Also, you may want to consider putting it in a trust, that way your business or even you as an individual can rent it from the trust, check suitabillity with the accountant first as this is expressed from personal experience.
     
  17. jakc

    jakc Well-Known Member

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    GCC followed up with a statement in an email:

    It is possible to reside in a dwelling which is located in a Zone other than a Residential Zone, provided that existing use rights can be determined.

    And on the phone they mentioned that need to provide records of last 15 years to apply for Existing Use Rights.

    Vendor has provided:
    • Purchased in 2008, vacant for 12 months, then leased out as residential
    • It was apparently a rental residential property before they bought it
    • They moved in to live in it in 2010-2013, rented out 2013-2015, then they moved back in
    • Their 'evidence' is a link to rent history on domain which shows as far back as 2009
    upload_2021-6-1_22-23-15.png


    I spotted in the contract that it lists a company with a share structure of 2 total shares at $2 each.

    Will get my conveyancer to have a look. I am leaning to letting this one go.