The ‘bizhome’ co­nun­drum

Mercury (Hobart) - Property - - Front Page - AN­DREW WIN­TER

SOME properties just defy be­ing cat­e­gorised.

We all know that a res­i­den­tial prop­erty is where an owner or ten­ant lives. Then we have in­dus­trial properties in which man­u­fac­tur­ing and gen­er­ally messy stuff takes place. Then there is com­mer­cial prop­erty that en­com­passes ev­ery­thing from re­tail to of­fice space where a lot of think­ing and buy­ing and sell­ing and busi­ness gets done.

But what cat­e­gory is a prop­erty com­pris­ing a shop with a flat above it, or a win­ery with a fam­ily home at­tached, or even a gar­den nurs­ery with own­ers’ res­i­dence? What about a guest house where the owner lives?

What th­ese properties have in com­mon is that they mix some form of in­come pro­duc­tion with a res­i­dence and the two ele­ments are not avail­able for sale sep­a­rately.

In the past few years, I have had sev­eral clients ex­pe­ri­enc­ing dif­fi­culty sell­ing this sort of prop­erty.

Re­gard­less of the type of in­come pro­duced, they all have the same dilemma: what pi­geon­hole should they fo­cus their mar­ket­ing on and how do they at­tract an au­di­ence?

The term ‘‘life­style prop­erty’’ doesn’t work for many of th­ese as it con­jures vi­sions of the prover­bial bar on the beach with a charm­ing beach house, or guest­house in a dreamy lo­ca­tion where we can share our lux­u­ri­ous home with pay­ing guests.

Within some ur­ban and city de­vel­op­ments you now also find units or townhouses that have been tagged as ‘‘live/work’’.

This ti­tle tells us that it is a place where we can live and run a small busi­ness of some type. How­ever, it is again too spe­cific as it tends to mean only that there is liv­ing area with some com­mer­cial space that can be used as an of­fice, stu­dio or gallery.

Cor­po­rate buy­ers and larger in­vestors are not in­ter­ested in this style of de­vel­op­ment as the liv­ing ac­com­mo­da­tion takes up too much of the prop­erty, in­creas­ing ac­qui­si­tion costs. Cor­po­rate buy­ers want facts and fig­ures, not a pretty house. And, while they­may con­sider chang­ing the res­i­den­tial el­e­ment into more lu­cra­tive busi­ness square me­tres, it is of­ten not cost-ef­fec­tive, or per­mis­si­ble.

Equally, home buy­ers who want to ex­pand the liv­ing space into the com­mer­cial sec­tion, may not find it prac­ti­cal or even per­mit­ted.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.