Is it okay to buy a house near high power lines where houses are <400M from the high power lines.
We are about to go to buy a vacant land (Melbourne east) and looking on google maps the high power lines are very close to the house like 200M.
Any views feedback about potential risk to health or drawbacks is appreciated? Thanks.There can be issues with getting finance.
If you need to borrow more than 80% – you might have issues with getting LMI to approve the loan.
Basically – if the valuation comes back and says that the property is in close proximity to powerlines – the bank may restrict the loan to 80% of the properties value.
It will effect future resale value too.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks very much for the reply. Also wanted to know if there is any health risks with kids?
Do a few searches , read a few articles over the years about the health issues with transgrid lines .
Would not buy one myself for PPOR , investment maybe if the numbers stack up,Hi JB
Away from the health issues there are a few other things to consider such as resale value etc.
We had a deal from a forum member not so long ago where we asked to do a 80% lvr on a block of land with a view to building on it down the track. When the valuation came back I noticed in 1 of the valuers photos there was power lines close to the block.
I suggested to the borrower we also put in a application based on an assumed construction price which would take the lvr to > 80% as I knew if we did that LMI would look at the deal.
They declined it and the borrower pulled out of the land contract.
Had he proceeded to purchase it and then found he couldn’t get construction funding would have to either save a lot or try and re-sell it.
Moral of the story is unless for some reason you love living close to the power lines avoid them like the plague as you might find it harder to find someone else to take over ownership.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Jeta/ Richard, Thanks very much from the insights. We have since refrained from buying the land.
Hello JB.
Are these power lines by any chance the ones through Narre Warren North?
I am interested in the area but also concerned about their impact on the investment re resale/development.
Hi Siraitken, These was in the Melbourne east around croydon/mooralbark
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