converting residential into commercial

hi all,
just drove past the main street near my home and i saw a house that i remember was a residential home- today it had a sign of a dentist clinic- and the driveway and backyard was converted into a parking lot. this got me thinking how is the process if one buys a residential property on a good main street and then rents it out to a business like a medical centre etc. does the council approve the commercial zoning ( iam in victoria wyndham city council), will the bank who finances this allow this, are there any other requirements that i am missing. thanks for all replies

Hi , Id have a chat to a town planner , not the council guy but a consultant. Often dentist doctors etc are able to get approval to operate in a residentail zone. one of ,y buildings has had a dentist in there for over 20 years. the rates are more expensive than if it were residential, but it really is a commercail property now with commercail lease etc.
j

Even though it might be residential zoned; there are generally 4 type of zones, not sure how different this is from state to state.

But in Hornsby NSW- Residential zoned 2 C- allows for Mixed business, Surgery, office etc....

Give council a call to find about zoning restrictions etc..

In term of finance; yes rate will be higher...

regards
Michael

Michael Chan ----- Finance (Mortgage/Commercial) Broker----
Michael@Shapehomeloans.com.au | 1300 SH LOAN | 1300 74 5626 | Fax: 02 8212 8909|
Same Bank. Better Rates. Served With A Passion.

cool thanks

jdawson is right, the zoning is most likely still residential but a permit is issued for a commercial use.  Only some uses are allowed in a residential zone, this includes medical centres and milk bars.  The most common non-residential conversion is probably some kind of medical centre (this includes dentists and other therapies like physio) and the council will review each application on a case by case basis.

Regards,

Melanie Ellis
Town Planner
www.achangeofplan.com.au

that explains it thanks melanie

No problem!

Melanie Ellis
Town Planner
www.achangeofplan.com.au

Some councils estimate the parking spaces required as one space per patient per doctor or dentist, plus a spare few. Parking contributions to council for spaces you don't have may be required. Def a job for a good local town planner who is well regarded by local council.
Cheers
thecrest

the cosmos always delivers so order carefully

Can I rent it out for commercial purpose.Do I have to apply with Council to convert residential zone .

In the case that we were talking about above the zoning hasn't changed (just my assumption but this is how it usually is).  There are a number of uses such as medical centres, childcares, milkbars etc that can operate in residentially zoned areas.  Basically the zone is residential and a planning permit is granted for a specific commercial use, the zone is not changed just the use of the land.  At any time if you wanted to you could convert back to a house without having to involve the planning department (not sure about other departments eg building) as a house is still an as of right use.

The other part of your question about renting is outside of my area of expertise but I'm sure someone here will be able to help you.

Cheers,

Melanie Ellis
Town Planner
www.achangeofplan.com.au

I don't no about Victoria but up in QLD I have run this exercise and once council put there hand out and once a bunch of other fees and charges have been paid the cost was over $150,000.
There is a fair bit that is required, mainly paper work though.
You will need a town planner

Conversion of a residential structure into a commercial building is only permitted in the commercial and the mixed use zoning districts. If a house is located in a commercial zoning district but has not been used for a commercial use in the past it is not an approved commercial building. Additional permitting and review is necessary to permit the house as a commercial use. A sketch plan or site plan is required to be submitted to the Department of Planning and Zoning demonstrating that the proposed building and property can meet the zoning requirements for commercial properties and uses. The sketch plan or site plan will compare the existing conditions to the zoning requirements. The submittal will evaluate requirements relating to parking, landscaping, setbacks, storm water management, and impervious coverage, and commercial floor area, access to the site, water supply, and sewage disposal.

Hi I have only recently joined the forum and noticed this post. We are commercial builders who have just tendered on such a project. We are meeting with the client on tuesday night so might be able to tell you more re victoria. I believe it has taken nearly 18 months to get townplanning for new use. Also upgrade council infrastructure etc to appease everyone. But up until recently there was some very generous gov grants for new med clinics, although now only for regional areas etc. I am very interested in the idea though if the $ stacked up.