how property rezoning can increase your property value

August 6, 2024
Effective Building
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If you’ve purchased a property that isn’t delivering the return on investment you need, property rezoning might be the next step that you need to take. While a considerable amount of time and deliberation should go into this decision, you can certainly benefit from the successful rezoning of your property. Here’s how different property rezoning scenarios can lead to an increase in the rezoned property’s value:

Property Rezoning from Agricultural to Residential

Unused or unprofitable farmland can be converted into residential areas where houses, apartments, condominiums can be built and leased to tenants. Of course, the specific residential building possibilities will depend on the designated density of residential zoning.

Single-family homes can be built on low density residential zones. Duplexes, townhouses, and low-rise apartments can be built on medium density residential zones. Lastly, high-rise apartments and condominiums can be built on high density residential zones.

The value of your previously agricultural property can significantly increase if there’s a high demand for residential housing in your area. Additionally, if properties around you have been rezoned from residential to commercial, then you can reasonably expect a high real estate value for your now residential property.

Property Rezoning from Residential to Commercial

The difference in rent prices between residential and commercial properties can be quite large. After all, offices are willing to pay more for a guaranteed space to conduct business operations and stores are willing to pay even higher for prime retail locations.

While owning a residential property can be profitable if you’re able to lease multiple units, a commercial property can be a better option in certain conditions.

For example, if there are already many residential properties in your area and you can’t compete with other housing providers in terms of prices or amenities, owning one of the few commercial properties in the area can be an easier task.

Can You Increase Property Value Through Rezoning?

You can definitely increase property value through rezoning. However, the process of rezoning can be long, costly, and complicated. You need to know exactly what you’re getting into and what your chances are before you start the rezoning process.

There are specific zoning regulations, requirements, and possibilities for every property. Seek local experts, such as Effective Building & Consultancy in New South Wales, to understand what your options are in rezoning your Sydney property.