26 Apr 2021

Property Zoning Basics That Every Australian Should Know

Property Zoning Basics That Every Australian Should Know

Did you know that you can’t always build a business in a place where people live? Or that sometimes, you can’t put a house next to stores and restaurants? 


The government designates properties for certain types of functions, using a process called “zoning.” By understanding the differences between the different zoning types, property owners can make the best investment decisions. 

What are the Main Zone Categories? 


Generally, properties fall into one of the following zone categories: 

  1. Residential – These properties are set aside for houses, apartments, and other buildings in which people will permanently live. 
  2. Agricultural – This term designates farmland, which will be subject to heavy machinery and chemicals. 
  3. Commercial – Properties zoned commercial will be used to build malls, shops, services, and other business ventures. They expect heavy traffic from customers and suppliers. 
  4. Industrial – Although people do business in industrial properties, they will use more heavy machinery and large trucks. Such properties include warehouses and factories. 


Can I Put a Residential Property in a Commercial or Industrial Zone? 


Most of the time, you cannot. State governments regulate these areas and most lenders will give you a loan to commit zoning fraud. Worse, local governments may assess fees against property owners who violate zoning restrictions. 


That said, property zoning is determined on the state and local level, which means that property owners can appeal to their governments to have the designations changed. Zoning councils hold regular meetings to determine the categories for properties, and these meetings can be attended by regular citizens. In fact, governments rezone land sections fairly often. 


Still Need Help? 


Our representatives at Mortgage House can help guide you through the sometimes difficult process of property zoning. We can help you discover if the land you’re interested in has been zoned residential or commercial. We can also help you find the right loan for your project. 


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