Should I buy a IP with drain water easement

[flosed]

Here is my situation.

I am in contract to buy a IP. Still in cooling off. I realized there is a easement now.

Should I be worried? The return is good . I don't know whether it may affect resell value in the long run.


Any advice will be appreciated. Thanks in advance.



Below is the title search:

"easement to drain water over existing line of pipes
affecting the part of the land above described shown so burdened in dp%%%%%

easement to drain water over esisting line of pipes
appurtenant to the land above described
"

Here is the plan drawing. Mine is lot 10.

 

[Aaron_C]

It's only a real problem if you can see them and/or you want to subdivide on that block later.

 

[Jake D]

How big is the block?
The easement doesn't appear to be anywhere near the boundary, which makes it more obtrusive than most.
In addition to subdividing, this will also affect sheds/workshops, pools, patios, extensions.
This would probably be more of a problem for people looking at PPOR purchases I imagine. (which may affect resale, if that is your goal - your potential buyers may be looking for an extension project, for example)

 

[JWR]

So negotiate harder to compensate - say due to the easement I need xyz off.

 

[flosed]

Thank you all for the advice. The land is 594 sqm. Yes it could be potential issue for home buyer.

I am already in cooling off. The return of current price will be around 7% to 8%. Need I risk the 0.25% deposit to negotiate more .

Forgot to mention, my though is long term investment. "Never Sell" if I can

 

[Jake D]

Forgot to mention, my though is long term investment. "Never Sell" if I can

If you're not planning to subdivide, extend or sell. It really won't affect you. However, why not use it as a negotiation tool if it's not too late?

 

[Peter_Tersteeg]

What's your future plans for this property? Can you see it as a developemnt site (not likely if it's 594sqm)?

We have a similar easement at the back of our property which we're developing. It means that we've had to be a bit creative with the design, but I don't think it's really hindered us. It also meant that when we purchased, other developers weren't interested in the property because there was a very obvious hurdle.

If you can't ever see yourself building over the easement, then it's unlikely to be a serious problem in the future.

 

[flosed]

Thank you for the advise. I am in cooling off period. How could I negotiate. Cancel the contract and sign a new one after ?

If you're not planning to subdivide, extend or sell. It really won't affect you. However, why not use it as a negotiation tool if it's not too late?

 

[Jake D]

I'm not the guy to ask. I know nothing about contracts, especially in NSW.

 

[Property Meister]

Id say use that as a tool for bargaining unless its already a bargain,

drains basically means not subdividable, unless the block is huge to begin with,

I know of a property that opposite the street sold for $290k, while this one sat on the market for months and sold for $250k when the $290k house was actually worse but didnt have the drain easement out the back

 

[flosed]

More question on the drawing.

I found another drawing on the contract. attached on bottom.

What's the difference between the solid line(in grey area, pointed by orange arrow ) and the dotted line (pointed by blue arrow )


Many thanks!

 

[Jake D]

Solid line looks like sewer. Grey line looks to be in the same/similar location as the drain from your previous picture.

 

[BAJ]

Shine the Light on them and watch them scatter

Solid line looks like sewer. Grey line looks to be in the same/similar location as the drain from your previous picture.

Hi flosed, I agreed...there were enough clues in the posts to track the property to Tregear.

Looking at my sources I reckon the solid is the sewer with the circle in the side street clearly visible as the actual manhole cover.

Very likely that the grey is the edge of the sewer easement.

Get copy of DP to check.

Cottage looks OK otherwise and the easement being at the rear shouldnt be a real worry.

Just my 2 cents worth