- I have a residential property in a busy commercial district. Can I rent it out for commercial purpose (i.e. use for medical clinic or home office)? Do I have to apply with Council to convert residential zone into business zone?
The property currently have more than 80% mortgage. If I convert it into business zone, will this effect the mortgage LVR?
Thanks a lot.
It depends upon the LEP. If the council will permit 'home occupations' then you can run a business from the premises. Otherwise you may need to get a spot rezoning (which may take 1-2 years). Best to speak with the town planner at council to check what you intend (you never know, it may be permissible without too much hassle).
Zoning does affect LVR, so best to check with a broker or your bank. It may not, however, affect any current lend, just potentially down the line if you try to sell. The next buyer may only be able to get a lower LVR due to business/mixed use zoning.
Wendy
http://www.realestatewomen.com.auWendy Chamberlain | Chamberlain Property Advocates
https://www.wendychamberlain.com.au
Email Me | Phone MeMelbourne Buyers Agent & Sellers Advocate | Independent | Flat Fee
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