Buying property near power ines

[r3ckless]

Hi All,

Looking for a bit of advice.

Have found a property which ticks all the boxes. location(almost) price number of bedrooms and bathrooms.

THe only downside with this property is it is facing a massive power line tower thing.

Lending wise, I will be borrowing over 80% so LMI is considered. From my experience, if a valuation is required, since LMI is considered the loan may not be approved due to being less than 200m distance from the power lines. This is not my concern as I will be using funds from other properties, paying LMI on those loans and thus keeping the LVR to 80% on this proposed purchase.

What I am concerned about is

- tenants may not want to live so close to a power line tower
- Hard to sell property down the track/capital gains may be reduced due to the power line

OPinions?

 

[Gateway]

May not be the case always. I was in an auction last week, and the power line and the tower were about 200 meters behind. I must say people don't bother probably unaware and the bidding was very hot and sold well over reserve.The agent asked if I am not bidding I showed her the power line, but there was no hesitation from few prospects, cheers

 

[rabidz]

May not be the case always. I was in an auction last week, and the power line and the tower were about 200 meters behind. I must say people don't bother probably unaware and the bidding was very hot and sold well over reserve.The agent asked if I am not bidding I showed her the power line, but there was no hesitation from few prospects, cheers

If this is in Melbourne, which suburb/auction (specific property) is this?
I'm curious to know. Thanks.

 

[mini2]

- tenants may not want to live so close to a power line tower
- Hard to sell property down the track/capital gains may be reduced due to the power line

Not sure on the LMI side of things but my credit union (absolute pain to deal with) says no LMI with a powerline easement on my block. Their valuer rated mine with an environmental risk of 4 out of 5 because a large portion of the block is dissected by the powerlines BUT it's right out the front, not like I could build anything with it anyway.

Tenant-wise...I had no trouble with mine, heck the current tenants are a GP couple no less. You'd think they'd be pretty cluey when it comes to EMF and health risk.

 

[r3ckless]

Well the power line tower here is like 30 metres from the townhouse. This is thr only issue with this place. I want a tiwnhouse with 3/2/1 minimum. This one is 3/2.5/1 has air con in every room. Massive vistots car spot. And all other town houses in same price range is 1toilet.only. just worried if the tower will put off tenants/future buyers. I mean i have no plans to sell if i buy but got to have an exit strategy. I also have tenants lined up for guaranteed 5 years. But always planning on the long term outlook...

 

[MightyWill]

I've always thought that living too close to the massive powerlines can cause cancer, etc. Living under the cables or right beside the cables or tower is a no no for me. A few houses away is ok though.

 

[Brady]

I would agree with your concerns.

 

[Scott No Mates]

Due to rational or irrational fears, housing near power lines and phone towers are more difficult to sell, sit on the market for longer and achieve a lower sales price

Whether it affects the rental achievable is more dependent upon whether the property presents better eg: facilities, upkeep, location, access etc.

 

[Corey Batt]

Well the power line tower here is like 30 metres from the townhouse. This is thr only issue with this place. I want a tiwnhouse with 3/2/1 minimum. This one is 3/2.5/1 has air con in every room. Massive vistots car spot. And all other town houses in same price range is 1toilet.only. just worried if the tower will put off tenants/future buyers. I mean i have no plans to sell if i buy but got to have an exit strategy. I also have tenants lined up for guaranteed 5 years. But always planning on the long term outlook...

Besides tenants/future buyers, you have to be concerned with valuers. Even though there are ways around valuation issues at purchase, if you are looking to access equity in the future from the property it may cause ongoing concerns.

 

[r3ckless]

Yes after moree thought. I know i would only ever be able ti borrow max 80% on this property so it isnt feasible

 

[Brady]

good option not so reckless

 

[roceans11]

I agree with the fact that the big towers and power lines will cause 'lesser' interest in your home if and when you decide to sell/rent, but what about the transmission underground feeders that we build, no one seems to worry about those as we can't see them

 

[Brady]

I agree with the fact that the big towers and power lines will cause 'lesser' interest in your home if and when you decide to sell/rent, but what about the transmission underground feeders that we build, no one seems to worry about those as we can't see them

Valuers cant see them so happy days.