Hi,
I currently have an investment property that has been rezoned from Low Density to Medium Density Residential.
This will allow for villas, townhouses, terraces, attached & detached dual occupancies and single dwelling.
The maximum height will remain at 9 metres.(obviously No Units due to height)
From anyone's experience will this rezoning have any affect on the price of the property, as being an investment property I will eventually need to sell
Thanks
as being an investment property I will eventually need to sell
Not sure why you say you'd need to sell. Don't have specific experience, but should think it would have a slight improvement in value. Now you (or someone) could put multiple properties on there now, so should be worth more, depending on block/lot size requirements. You could get approached to sell so that they could combine lots. Or maybe you will buy up your neighbours and develop it yourself!
Whilst you are correct, I'm going to assume our OP friend is not a property developer, and doesn't have the financial means to go through a development process. If he sells off to a developer, he's not going to get a true reflection of the value of the asset. The future value of his accumulated rental cash flows will be greater at the higher yield his single dwelling than if he were to sell the asset in then short term, whilst there are many similar assets on his street. Simply put, the more people sell their asset to be developed around you, the more attractive your asset becomes. Soon, some of the properties on the street will become multi-occupied dwellings (with maybe 2-3 apartments or town houses).
They're either going to get leased out by the developer, or sold off in strata.
Whichever way it goes, a single occupant dwelling on the same street, in similar condition will fetch a rental premium, in turn, increasing the market value of the property.
My advice to you OP is to renovate the premises when you're financially and logistically able to, to ensure that your property remains a premium option on the street. Hold the asset for as long as you can.
If you've got a standard full sized home, you should pat yourself on the back, and prepare to hold this asset.
Comparable properties will start to be redeveloped into medium density dwellings. 10 to 15 years later, you might find there are fewer standard full sized home; for which will fetch a premium on that street.