Property in commercial zone

Discussion in 'Commercial Property' started by Ko Ko Naing, 8th Nov, 2016.

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  1. Ko Ko Naing

    Ko Ko Naing Well-Known Member

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    Hi,
    I'm wondering what are the complication with a property in commercial zone. I'm looking to buy one and rent it out as a residential property as a typical buy-and-hold property. It was tenanted before. So it means that it can be rented out as a residential property. My initial DD makes me reckon there is no need to apply for permit if it needs to be used as clinic, milk bar or any approved business.

    What are the advantages of being in a commercial zone? Or any disadvantages? The property in question is in Victoria. It is also a period home under heritage overlay, meaning that there is some restrictions on what I can do with its exterior. I assume I can easily demolish it.

    Would love to know what PCers think.
     
  2. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

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    Hi cherubym,

    Would probably need more information to make an accurate judgement but generally speaking, advantages can be that the tenant is close to standard desirable amenities which will making renting it easier and depending on proximity (i.e. is it down the street or right above?), could have a positive effect on value. Disadvantages could be the exact opposite of that if it's simply too close for noise and traffic reasons which then becomes undesirable.

    I would also consider the type of tenants you're looking to attract as well as future buyers. An apartment above commercial is quite common but it should be designed as such. Is it a suburban area with a set of corner shops or is it in the middle of a busy thoroughfare with other apartments/resi dwellings around? There are so many variables at play here.

    Regarding your heritage overlay question - never assume anything! Here is some good starting information.

    Cheers,

    Andrew
     
  3. Scott No Mates

    Scott No Mates Well-Known Member

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    If it's previously been used as a residential premises it doesn't necessarily mean that the usage was approved (or application submitted to the council). Is it a use which comes under the commercial zoning?

    If it's zoned for commercial usage why would you want to put up with short term residential tenants rather than 3 year commitments?

    Small commercial properties add character to an area and can be affected by heritage overlays - this may prevent complete demolition.
     
  4. Ko Ko Naing

    Ko Ko Naing Well-Known Member

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    Thanks for your comments. It's located in a quiet suburban area, not in a busy crowded town center at all. The link also helps me understand what heritage overlay is about in general.
     
    MyPropertyPro likes this.
  5. Ko Ko Naing

    Ko Ko Naing Well-Known Member

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    I believe it is actually in a residential area, where there are lots of period homes. It happens to be included under the commercial zone, when the council adjusted the zoning areas in the suburb.

    This is my intention to find a long term commercial tenant down the track. But for the moment, being a typical period home and without the willingness to make a huge modification to the property, I am planning to hold it for a while before I give it a crack.
     
  6. Angel

    Angel Well-Known Member

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    I can think of several types of businesses that would love to operate out of a period building as it would appeal to their clients. They are businesses that want easy parking so off a main road would be perfect. such as anyone really in the building and fashion design industries, hairdressers, pet store, florist, medical/beauty........
     
    Ko Ko Naing likes this.

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