Property near substation and financing

A full valuation will reveal a high risk rating on the property with some notes attached. Lenders would then have restrictions in place based on this and as a result you would probably be restricted to 80% LVR, possibly lower.

The easiest way to get around this is to use a lender than won't perform a full valuation as Terry has suggested, the catch is often (but not always) these types of valuations are restricted to 80% or lower.

If lenders don't feel it's a suitable security, perhaps they've got good reason to and perhaps you should also be reluctant to take it on.
 
Even if you were successful with finance ... I would be concerned when it came time to sell or even rent in many cases. I could not go there regardless of the price.
 
First response would be no, if it is in the adjacent unit block it might make a difference if the property was at the far end away from the substation.
If it isn't the listing price would probably reflect a lower value?
In a hot market it might be easy to sell but when things slow down properties close to power lines etc are often the ones which take the biggest hit in values as vendors have to sell at a larger discount when there are plenty of properties available and not many people are buying IMO
 
Even if you were successful with finance ... I would be concerned when it came time to sell or even rent in many cases. I could not go there regardless of the price.

Exactly my thoughts. Sure you can get the finance to work - but the long term value will be affected by the substation next door.

The one play where this would be worth it is if you knew the substation was being moved in the future - but can't remember ever hearing of this happening in the past.
 
Exactly my thoughts. Sure you can get the finance to work - but the long term value will be affected by the substation next door.

The one play where this would be worth it is if you knew the substation was being moved in the future - but can't remember ever hearing of this happening in the past.


I don't think it is moved even in the distant future..as they are instead upgrading it by putting a concrete block to enclose it ..so from outside it will look like a normal house :)
 
Back
Top