ZONING CONSIDERATIONS & IMPLICATIONS

ZONING CONSIDERATIONS & IMPLICATIONS

Andrew Macallum - Principal Interest Multi Family Investments

Royal LePage Commercial - Sales Representative - www.principalinterest.ca

April 30, 2022

Investors look to the highest and best use of any property acquisition to ensure the return on investment meets their expectations.??

Homeowners who have lived their lives in a family home that was built a generation or two ago may now find themselves in the unique position of being situated on land - that because of zoning changes over time - is now far more valuable than it ever was when the home was built, even with consideration of natural year over year growth.

A couple of recent sales and property inquiries have shed some light on the advantages and disadvantages of understanding how property zoning benefits the potential sale of a property.

CASE STUDY 1

This home had been in the family for two generations, with the most recent owners having lived there the better part of their adult lives. ? Situated in a downtown area provided easy access to schools, shops and restaurants.? Like most downtowns, this is where the population started with subsequent growth seen as urban sprawl.? With government at all levels looking to satisfy housing needs through densification, zoning changed over time allowing for different uses that would best reflect the commercial interests of this particular neighbourhood.??

CASE STUDY 2

This home was built by the owners about 60 years ago.? At the time, it was located on the outskirts of town - in the country and on a two-lane road.? Urban sprawl (as mentioned above) changed the nature of this property into a very desirable commercial development opportunity.? It is surrounded by retail plazas housing premier commercial tenants and a regional transportation hub.? The major municipal infrastructure plans for the area will mean an increase in the local population and a need for business to support it.

Knowing what the zoning and permitted uses are for a property will help find the right buyer and ensure that the highest value is realized from its sale.?

This short article written by Ontario Professional Planners Institute titled “IMPACT OF LAND USE PLANNING ON PROPERTY ASSESSMENT” provides insight into the impact that planning policies can have on the value of property.??

Needless to say -? many homeowners who have lived their lives in their family home may not realize the changes in zoning that could impact their property value to their benefit.?