When homes on the Australian housing market cost $150,000, the conventional mortgage became the financing standard. As homes became more expensive, it became clear that fewer Australians could afford the price tag. Then, the housing crisis hit and the public became weary of variable-rate mortgages. Nonetheless, many renters aim to […]
By Mortgage Street
15 January 2022
Featured
Residential in Industrial/Commercial Zoning
It happens that a broker may come across a residential in industrial/commercial zoning property because their client wants to purchase it. Mortgage Street offers some information.
Residential in Industrial/Commercial Zoning: Activity and Use
Zoning laws went into effect to separate residential activities from industrial, commercial, and agricultural activities. Zoning changes weren’t always swift. Some went into effect piece by piece. So, it could be that a client finds a residential in industrial/commercial zoning property. Decisions need to be made before an offer is placed on this home. Due diligence also needs to be completed.
If a residential house is situated in industrial and commercial zones, it’s important to find out the types of activities permitted. A client may have a few scenarios in mind. For example, the client might decide to turn the residence into a commercial store. It’s already zoned for that type of activity, so making the change may only require construction and renovation.
It’s worth understanding why a residence is located within an industrial and commercial zone. The previous owner or tenant may have had a variance. Special permits are handed out by local governments and zoning councils in unique situations.
While exploring a property, visit it during the daytime and nighttime. Understanding the activity that surrounds it is a must if the property is going to remain residential. If there’s a lot of industrial traffic, noise, and pollution, it may not be comfortable to live in. If there are plans to knock the home down and build something else, there are other details to consider. Is the property zoned for a parking space, signage limitations, or conditional use?
Residential in Industrial/Commercial Zoning Conclusion
A residential in industrial/commercial zoning property is not that common. If your client has found one, Mortgage Street can take a look at the details. Based on the information we see, we can offer a few financing solutions. It may qualify for a commercial loan or an owner-build financial product. To find out more, contact our lending team.