High Tension Power Lines

[Brady]

Brokers out there, can't assist a client of mine.


High Tension Power Lines 40M from boundry.

Unacceptable security with CBA.


I'm sure there are some out there that can help.

Purchase Price $285,000 - $300p/w rent

90% Base LVR

Split loan loan
$56,500 2YR Fixed @ 4.99% IO2YRS
$200,000 Variable @ 5.6% IO2YRS (offset available)

Income $33,000 gross p.a living at home not paying board..


Thanks

 

[jonmardell]

this is a genworth policy. i have never seen it written down anywhere in QBE policy so it would be based on the valuation report on a case by case basis in my opinion.

Brokers out there, can't assist a client of mine.


High Tension Power Lines 40M from boundry.

Unacceptable security with CBA.


I'm sure there are some out there that can help.

Purchase Price $285,000 - $300p/w rent

90% Base LVR

Split loan loan
$56,500 2YR Fixed @ 4.99% IO2YRS
$200,000 Variable @ 5.6% IO2YRS (offset available)

Income $33,000 gross p.a living at home not paying board..


Thanks

 

[Shahin_Afarin]

Its definitely case by case because it depends on the other risk ratings as well. If this is the only issue then most lenders will not have an issue with this. I did one last week under an SMSF in Doonside.

In order to save potentially multiple hits on your client's credit file - order an upfront val and have a look at the valuation. I know that Homeside and St George will not have issues at 90% but again it all comes down to the other risk factors.

Regards

Shahin

 

[jonmardell]

Homeside uses Genworth so there might be some issues.

Its definitely case by case because it depends on the other risk ratings as well. If this is the only issue then most lenders will not have an issue with this. I did one last week under an SMSF in Doonside.

In order to save potentially multiple hits on your client's credit file - order an upfront val and have a look at the valuation. I know that Homeside and St George will not have issues at 90% but again it all comes down to the other risk factors.

Regards

Shahin

 

[Brady]

Homeside uses Genworth so there might be some issues.

Small other issue, main rd.

ENVIRONMENT ISSUE RISK COMMENT:
HIGH TENSION LINE EASEMENT high tension line easement is located to the west of the subject property with concrete/steel supporting stanchions carry 3 high tension power lines located approximately 40 metres from the western boundary, while the walls of the principal residence are approximately 45 metres from the transmission line. Furthermore, the subject backs onto Bridge Rd which is a main road carrying medium to high volume of traffic which is seperated by a nature strip. As such, the subject property is adversely impacted by the associated road noise of passing vehicles.

And yes its Genworth that won't accept the security.

Anyone know if QBE does?

 

[Mick C]

Small other issue, main rd.



And yes its Genworth that won't accept the security.

Anyone know if QBE does?

NAB will consider ( Not homeside, NAB direct) under their DUA with QBE.
Main road is ok.

as mentioned it will also come down to any other "risk rating" above 3 that's listed in the val.

 

[Peter_Tersteeg]

The alternate solution to finding a lender who'll accept the security is simply to find one that will take the contract of sale without performing a valuation. At 90% it might be possible to get away with this with ANZ.

Yes, it's sneeky, but it gets the job done.

I would be asking questions about the wisdom of a purchase so close to power lines.

 

[Brady]

NAB will consider ( Not homeside, NAB direct) under their DUA with QBE.
Main road is ok.

as mentioned it will also come down to any other "risk rating" above 3 that's listed in the val.

Thanks Mick I'll advise the client that it can be done if he's wanting to proceed.

Haha after I told him he jumped online and done some research on the health risks of powerlines...

Don't think he's proceeding anymore.


Thanks again all for the quick responses.

 

[Mick C]

The alternate solution to finding a lender who'll accept the security is simply to find one that will take the contract of sale without performing a valuation. At 90% it might be possible to get away with this with ANZ.

Yes, it's sneeky, but it gets the job done.

^ good advice....No val policy...slipped my mind

 

[Aaron_C]

Yes no val policy is the way to go here. If any valuer sees the massive power line then you got a environmental risk rating of 5 straight away, then bye-bye to LMI.

 

[Marty McDonald]

More to the point if every purchaser in the future is going to have this issue I would want it to be the bargain of the century! and be advising my client to consider the risks. There is also the issue of not being able to refi or cash out in the future...so even if you slip it through with a no val policy lender it may not be a very good idea.

 

[Brady]

More to the point if every purchaser in the future is going to have this issue I would want it to be the bargain of the century! and be advising my client to consider the risks. There is also the issue of not being able to refi or cash out in the future...so even if you slip it through with a no val policy lender it may not be a very good idea.

Yes agent rang me back today and advised her of the bad news.

poor women was a little upset when I told her that a huge chunk of her target buyers wouldn't be able to purchase the property.

Her first thought was to see if could see the house cheaper so <80% LVR but that would of been a HUUUUGE discount on price.


Had a good chat with client and he's now happily walking away from this deal with a small amount of extra experience under his belt

 

[RightValue]

Yes no val policy is the way to go here. If any valuer sees the massive power line then you got a environmental risk rating of 5 straight away, then bye-bye to LMI.

Nah, for me that's only a 4 being 40M away, over the property is a 5.

But add in the main road and the environmental risk would probably come out at a 5 on this property.

The market segment would possibly also be a 3 or 4 as well due to these factors cutting out a chunk of the market (as mentioned).

In boom times no one really gives these negative factors too much weight, but in slow market conditions the value of properties with these negative factors plummets in relation to other properties in the area as no one wants to buy them due to lots of choice of better properties..

 

[Brady]

Nah, for me that's only a 4 being 40M away, over the property is a 5.

But add in the main road and the environmental risk would probably come out at a 5 on this property.

The market segment would possibly also be a 3 or 4 as well due to these factors cutting out a chunk of the market (as mentioned).

In boom times no one really gives these negative factors too much weight, but in slow market conditions the value of properties with these negative factors plummets in relation to other properties in the area as no one wants to buy them due to lots of choice of better properties..

Risk Rating was a 4, IMO didn't think the main rd warranted a mention its not that busy.