Buying property with an easement

Hi all,

Just seeking some advice.

Was looking at buying an investment property however it has an easement (water) running through the middle of the backyard. It crosses both neighbours on either side as well.

I don't ever plan on developing on it but just wondering if it would lower the value if I was to sell it down the track or would be harder to sell because of it? Should I steer clear of properties with easements?

Thank you in advance.

 

Hi Wendy,

It is all a matter of personal preference. It is not uncommon for an easement to be on title and if it is not going to be a future concern for development it should not real issue in respect to value. If everything else stacked up I would not let it stop me pulling the trigger.

Mick

 

Hi Wendy,

This sort of easement would devalue the property. This is because even if you did not have any ambitions to develop the property yourself, the person who purchases it from you down the track may have such an aspiration. So it would reduce the pool of interested parties and therefore your resale value.

That said, the easement would be built into your purchase price as well.

My view on this sort thing is as follows: we don't get that many opportunities to purchase property in our lives. Property is a big ticket item, and you should avoid aspect that would obviously impair its value.

If you can afford something similar without an easement across the back yard, that would be preferable.

Kind regards,
John Comino
Bridge to Bricks

 

Thank you John and Mick. It's good advice.

 

Hi Wendy,

FYI that there was this thread <Link> on sewer easements through properties. You could still develop but needed to encase it in concrete first which is an extra cost. Note: I'm not very familiar with this and never done it before. I saw a property with one and was curious how you deal with it.