Purchasing a property is not just about purchasing it in a good location and holding for the longterm , it is a lot more is about unlocking a property ’ s true potential and building wealth .
Whether you are a new investor or a seasoned one , it is critical to understand what makes up the value of your property as well as the various critical factors toward preserving that value .
The one critical factor that some property investors at times struggle to discover , but that might intensely impact the value of your property , and it being a key influencing element is town planning . Town Planning is one critical element that many property investors should pay attention to when hoping to develop and to maximize on the opportunities present .
The Impact of Zoning Zoning laws represent land usage rights a property has and also regulate how the property should be used whether for residential , commercial , industrial or agricultural purposes .
Given the potential value involved , it is essential to recognise that zoning can have a significant impact on any property . So how can zoning impact a value of property ?
The impact of zoning can be seen in two folds , one being the current land usage rights and the changes in zoning to accommodate future developments . For instance , specific land might be zoned for agricultural purposes and such land prohibits the development of medium to high density residential developments such as town houses and apartments in terms of zoning laws .
Furthermore , this kind of zoning , therefore , might inspire little appetite for property investors . The changes in zoning represent a good potential value especially if they are exploited timeously .
For instance , land zoned for residential use , but could be potentially rezoned for commercial development as proposed in the municipal spatial development plan . Those properties are more valuable use than a similar property with a single residential zone where commercial development is prohibited . There is an unavoidable substantial price difference between properties with different zoning rights even if they are adjacent from one another .
Even if you are purchasing a property with the intention of holding on to it for the long term , as either a home or investment , being knowledgeable on town planning is remains critical . For
SA Real Estate Investor Magazine FEB 2022 33