Property Investment: Three Zoning Aspects to Consider

Environmental Blog

Zoning is an important discipline that deals with the control of land usage and the buildings built on it. In simple terms, the areas of land in each region are divided by government land authorities into sections or zones. The zones will be dedicated to specific uses or applications, regardless of ownership. This practice ensures that the land developments are organised for maximum efficiency and profit of the entire region. Therefore, it is critical to understand the practices involved if you are planning on investing in land for commercial or residential usage. Here are the important zoning aspects to consider before choosing the ideal property for purchase.

Type of Zone

There are different types of zones in the country that every property investor should understand. Generally, there are four primary categories: residential, agricultural, industrial and commercial zones. These are extremely basic regional sections, so they are usually classified into more distinct zones to make the urban planning process easier. For example, the residential zone is divided into more sections depending on the intended density of the area.

These special sections include general residential, low density, large lot, medium density and high density zones. You should evaluate and compare these zones because they can determine your long-term profits, especially if you are planning on creating rental developments. For instance, you can build more housing units in a high density zone, but the rental charge will be lower than in the more spacious low density zone.

Overlay Zoning

There are additional zoning rules that might apply to some areas in addition to the standard regulations used to partition the region. Basically, an area with these special provisions is known as an overlay zone. It is important to know if your potential investment is subject to overlay zoning before making your purchase. This will protect you from unforeseen complications when planning your development. In simple terms, the overlay can be created to conserve a district with heritage significance or environmental elements. These aspects can limit the nature of the potential development.


Land can be rezoned, which means that it will be classified in a different category. You should know about potential changes because the new zones will have different regulations, and this could be beneficial or detrimental. Basically, the investment could be more or less profitable, depending on the new range of permissible uses.

You should engage an urban planning expert during the property assessment and selection process. The professional will help you understand the specifics of your potential property.


18 December 2015

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