Astute investors are often on the lookout for investment opportunities created by zoning changes.
When a residential block occupied by one sole house is re-classified to medium density, the owner can put up, six to eight units in its place. Town houses are a further option. Another good example is when re-zoning changes residential to retail.
This can create mixed-use properties allowing the ground floor sections of units or blocks to house value-adding businesses that add convenience or charm such as a café, deli or an attractive gift shop. Amalgamating properties can also add value. Creating larger parcels of land allows for increased investment possibilities as both the size and amount of buildings that can be erected increases dramatically.
Property developers seeking medium density tracts look for such situations, and should you be on the receiving end of one of these purchases, the price that you get for your property could be anything from 40to 80% more than a normal houses fair market value in the area. Sometimes small investors see an opportunity and cherry pick a corner block or another key parcel of land that creates a land locked situation putting themselves in the box seat to negotiate. This is a great feeling when you know that the developer needs your parcel of land for the development to go ahead.
Hot tip: The market seems to still be moving quiet well over the winter period due to lack of stock, which is creating a higher demand. The word is that there is a lot of property coming on at Spring time so be a bit patient. But please remember as the buyer bank builds up this Spring property will disappear real quick.
