I am interested in purchasing land for a small cafe restaurant. Just wanted to know if it were cheaper to purchase residential land to convert to commercial versus purchasing commercial land.
2007-05-30 14:34:24 · 5 answers · asked by tlezzie 1 in Business & Finance ➔ Renting & Real Estate
Proceed with great caution, and a good lawyer who is experienced in land use issues. You can't just "convert" land from residential to commercial use. There will be a set process, and laws that govern the process. And, the local zoning/planning authorities will have intentions and biases that may not allow for your project, even if it were technically possible to accommodate you.
A good way to proceed (with counsel) may be to make an offer on some residential property, but make closing contingent on whether you can obtain the necessary re-zoning or variance to use the land as you wish.
You need a lawyer!
2007-05-30 14:39:12 · answer #1 · answered by TS 2 · 1⤊ 0⤋
it may not be possible at all, so 'cheaper' likely doesn't enter into it.
The days when a propery owner could pretty much do as he pleased and build whatever he wanted are long gone. These days, you'd likely have to [depends on state and local law] first have the master plan amended. That involves petitioning and hearings at which opponents [the green lobby] can testify as to how full of it you are.
After a few hearings and an unknown number of button holeings by both you and the opponents, a recommendation will be made by the planning commission and then acted on [more politics] by the local council. And then there'll be appeals and motions for re-consideration. Of course, all the local councilpersons will listen respectfully, but most will listen to the campaign dollars more than anything else.
By now you're probably getting the idea ... the average small guy in the average US location can't get such a change made.
So you'll likely end up buying the commercial property despite that it costs more (possibly much more).
2007-05-30 21:42:26 · answer #2 · answered by Spock (rhp) 7 · 1⤊ 0⤋
If you buy land in an area zoned residential, you would have to petition for the change to commercial, go through hearings, and basically forget about doing anything commercial with the land for at least six months. For the headaches it will no doubt cause, you should just go with the land already zoned commercial.
2007-05-30 21:39:59 · answer #3 · answered by Brian G 6 · 1⤊ 0⤋
The main thing you better watch out for is buying residential land and then not being able to switch it over to commercial. Then you have land and can not do what you want to do with it. You want to get it rezoned before you buy it.
2007-05-30 22:15:19 · answer #4 · answered by brianmcamis 1 · 0⤊ 0⤋
Nothing is a sure bet. What if you spend a lot of money and the change is not approved. I am not a gambler, so I would go with the commercial land
2007-05-30 21:37:07 · answer #5 · answered by mel s 6 · 1⤊ 1⤋