Hi all, Double posted in the Commercial Property section. Short story - my parents own a 3,300 sqm block zoned B4 Mixed Use. We've already agreed that the long term best use for our block is for a development rather than selling as a going concern. There are adjoining houses zoned R2 Low Density Residential. One of the owners has just approached us to buy his block, which would be a good addition to our own and take the parcel to 3,900 sqm with highway frontage and rear lane access. We're trying to work out what sort of offer we should make him. Does anyone know how easy/expensive it is to get R2 rezoned to B4 if it is already adjoining a B4 block (Lake Macquarie Council area)? If the parcel grows from it's current 3300 sqm to 3900 sqm would that significantly increase value? We're probably not going to be able to do a development of this size ourselves so would be selling it as a development site. A bit worried that as the block size, and scale of development gets too large it actually limits your potential buyers and you lose some negotiating power.
Im not a town planner or architect so please take what I'm saying with a grain of salt but a couple of things to consider. firstly have you spoken to the council about s94 fees? LMC's s94 fees are huge. I was looking at developing a site in Cardiff and was put off by the s94 fees. It just turned a good deal into an ordinary deal. Re the rezoning - you need to submit an application to the council to get the zoning changed. I think considering it situated next a B4 zoned property you shouldn't have too many hoops to jump through but nevertheless this is a specific question for your architect/town planner. Have you spoken to a town planner about what you can do with the site as is? B4 zoned properties usually have excellent FSR allowances.
