Property below power lines

Hi all,

I've put in an offer for this property and have got an informal acceptance from the owner for a good price. The house is not liveable and my plan is to knock it down and subdivide in half and build 2 dwellings.

Initially, i was pretty happy with it but the more i thought about it the more i became reluctant. If you have a look at the property you'll be able to see 66kv power lines that run above the front of the house and through the back. Would any one here see this as a problem? Are they a health risk? Should I be looking elsewhere? I dont know whether i'll just be digging myself into a hole here. This is my first ever property and i feel very nervous and just dont want to encounter any problems in the future. Please help.

Just to note, the house across it, (#3) sold for $357K a couple of weeks ago.

Thanks,

Emjay.
 
I wouldn't buy it. It may make the property more difficult to sell in the future. Visit the property at night and hold a fluro light in the air - see if it lights up!
 
Thanks for the reply Dave. You're right, there has been an issue with this property with regards to whether subdivision was possible. However, the agent has been in contact with the council and SA Power Networks and the latter have said that they are prepared to allow building under these lines as long as prescribed clearances are met.
 
PS why is the house unliveable? Looks OK on the outside in the photo.

Also why on the boundary layout does 57 from the street above go down to wher 6 trewek should be?
 
I actually went inside it and it's a real dump. All the floors are cracked and everything. It was like a scene from a war movie. And silly me didn't even bother asking why, i was just so interested in the land.

With regards to the boundary layout, i think google maps just didn't put the boundary there. There's actually a fence that separates it from 57.
 
EMR is a contentious topic

Aside from the obvious visual aspect, lenders wont like these things and getting more than 80 % is near impossible.

While that may not affect you directly, it reducedes the future buyer pool and thus will hold down cap gain.

The additional risk that you carry here is that right now EMR illness due to resi proximity is just theory to a large extent, the theory may crystallise under the weight of evidence and leave you with an unsaleable asset.

As a scientist, who can work with numbers and broadsheet financial risk from a gut feel basis, I reckon this one may have more fleas than dog.



ta


rolf
 
Thanks for the input Rolf.

The EMR rumours and hearsay are pretty much what i'm worried about and the fact that it might have a drastic impact on its resaleability. You do raise a fair argument with regards to evidence towards the negative impact of EMR. But this debate has been going on for decades right and still no concrete evidence.

Would there be any worth in trying to sell the 2 new properties immediately once they are complete? I was initially planning on holding them and renting them out.
 
EMR is a contentious topic

Aside from the obvious visual aspect, lenders wont like these things and getting more than 80 % is near impossible.

Good point, someone I know was buying in 2770 a few months ago and it had some of the big power lines in an open space at the rear of the house, not above it. Lender said no go at more than 70% LVR.
 
Thanks for the input Rolf.

The EMR rumours and hearsay are pretty much what i'm worried about and the fact that it might have a drastic impact on its resaleability. You do raise a fair argument with regards to evidence towards the negative impact of EMR. But this debate has been going on for decades right and still no concrete evidence. .


I dont disagree .................but there are many examples of similar things where some doubt existed for a long time.

basic application of the inverse square law will show that in most cases the EMR is lower than using a cell phone..................but the long term continued exposure is possible significant here.

Google a mineral called crocidolite . For decades it was as safe as house - literally, until the "incubation"period was a reached and whammo..........

ta
rolf
 
I dont disagree .................but there are many examples of similar things where some doubt existed for a long time.

basic application of the inverse square law will show that in most cases the EMR is lower than using a cell phone..................but the long term continued exposure is possible significant here.

Google a mineral called crocidolite . For decades it was as safe as house - literally, until the "incubation"period was a reached and whammo..........

ta
rolf

Yep, i completely understand. Doubt is the major factor here, and if i'm having it, then i'll have to assume future buyers will too.

I actually went to the property just then to talk to some of the neighbours and those living nearby. I spoke to a very nice lady next door and I discovered that the owner of the house in question is actually mentally ill. Apparently, when she moved in there, she was normal. She is now 45 years old and the inside of the house is like a tornado went through it. I'm not suggesting whether her illness is linked to the power lines but it does make you think. The lady that i spoke to is perfectly fine and she's been there for years. I spoke to others with houses that were close to the same lines but not directly underneath and they weren't concerned with them at all.

Another common issue that was raised what that the soil is very unstable. In fact, you could see uneven fences and slight warping along the roads. This would mean a much stronger foundation is required increasing building costs even more.
 
the agent has been in contact with the council and SA Power Networks

Trust no one when it comes to selling anything.Get it in writing......i doubt they will do it.What you are told you can do and what gets approved may be two different things.Looks like a hard gig to make a $$$$$$$$$$
 
Trust no one when it comes to selling anything.Get it in writing......i doubt they will do it.What you are told you can do and what gets approved may be two different things.Looks like a hard gig to make a $$$$$$$$$$

The agent fowarded me the email from SA Power Networks so it "seemed" legit.

I'm looking more and more into giving this one a miss...
 
I hope you have lots of deposit.

As a valuer I would risk it a 5 (max risk) on environment and put poor marketability and an extended marketing period on the property and say that it may well sell for a lot less in poor market conditions.

Basically no mortgage insurer should touch it.

In boom times people ignore detriments such as this, in times when the market is slow and there are plenty of alternatives to buy, people bypass such properties.
 
I hope you have lots of deposit.

As a valuer I would risk it a 5 (max risk) on environment and put poor marketability and an extended marketing period on the property and say that it may well sell for a lot less in poor market conditions.

Basically no mortgage insurer should touch it.

In boom times people ignore detriments such as this, in times when the market is slow and there are plenty of alternatives to buy, people bypass such properties.

Thanks for the insight RightValue. So the fact that the property across it sold for $357K doesn't give it any merit?
 
Thanks for the insight RightValue. So the fact that the property across it sold for $357K doesn't give it any merit?

check the veracity of the data ......... and who bought the property.

In any case, RVs point of a 5 on enviro issues is low ;)

its just thats the max you can apply.

My major issue with this puppy is that you can not quantify the future risk.


ta
rolf
 
check the veracity of the data ......... and who bought the property.

In any case, RVs point of a 5 on enviro issues is low ;)

its just thats the max you can apply.

My major issue with this puppy is that you can not quantify the future risk.


ta
rolf

The data was from realestate.com.au. It shows it in the list of recent sales in the area. It was asking for 330-380 and sold for 357.

Thanks for the clarification with regards to RV's point. But yes future risk is hard to quantify, that's why if i ever undertake this venture, i think the best thing to do is to sell immediately.
 
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