Is an electricity easement an issue?

Hi,

I'm interested in purchasing a block of land, and there is an electricity easement (power lines) that run over approximately the front one third of the land.

I would like to know the following, please:

a) Do these power lines pose a safety risk, given that they will be quite close to the house ~8m (once it's built)?

b) I heard that you have to leave a 4.5m clearance under the entire length of the power lines for maintenance access -is that true? I would want to landscape the front of the house, so leaving a 4.5m clearance is unrealistic.

c) Does this electricity easement devalue the property?

Thanks.

 

It depends which State the property is in and the terms of the easement itself. Keep in mind that banks may also not lend within a certain distance of power lines

 

a) Nothing proven - what sort of power lines? High tension or telegraph pole?
b) The easement may also provide that additional space be granted as a right of way etc but this will be noted on the terms of the easement.
c) Yes when compared to blocks which are not affected by the easement.

These blocks are also more difficult to sell.

 

Hi,
Thanks for that info -the property is in VIC.

 

Thanks. I will need to look at the terms of the easement.

 

I have no idea what sort of power lines they are -I will give the energy company a call tomorrow to enquire.

 

Have your solicitor explain it. Unless you have on choice, most investors would pass SD these properties are less attractive to tenants.

 

I don't plan to purchase this land as in investment -I want it for myself, to build a house on. It is approx 5 acres.

I do have a choice (I can keep looking), I'm just not sure if an electricity easement should be viewed as a deal breaker.

 

5 acres - not a problem. If it was 450m² big problem.

 

Buyers are mostly turned off by power lines. Valuations etc may be impacted.

I wouldnt live near them. The sizzle during wet weather can be a noise nuisance. They also attract lightning but are designed to take a hit. The jury is out about hazards. BUT....

 

For regular resi property you'd have trouble getting more than an 80% lend on them. This means if you need to sell, you can only sell to people that don't need more than 80% LVR and who have no beef with the power lines.

 

80% of what value ? If there are two lots beside each other and one has powerlines and the other doesnt I may imagine the power line lot may have a lesser value. Firstly as a % of the lot cant be constructed under the lines and second to allow for buyers who will find the land encumbered with issues, real or imaginary.

Found a paper on it https://espace.library.uq.edu.au/da...LFvbZwmsDg__&Key-Pair-Id=APKAJKNBJ4MJBJNC6NLQ

If any valuers have some insights it would be interesting

 

Hi

I have found in the past with land in new estates that was very close to the large power lines in Clyde North versus the blocks that weren't close to the large power lines the price difference was approx 20% and nearly up to 25%.

Also when blocks came up for sale in Lyndhurst behind Marriott Waters shopping centre, the blocks closest to the large power lines also had an approx discount of about 15% versus the blocks further away from the large power lines.

So I have seen the difference have a range of between 15% to 25%.

Regards,

alicudi

 

Probably a good idea to find out if they are High Voltage lines or just standard telegraph poles(distribution line) that you find in most suburban areas in Australia cities and large towns.
If its a 5 acre block just move the house back a bit, or move on.
Millions of Australians walk out their front door and have power lines running along their verge.

 

Hi,
Thanks for all the helpful replies.
It is so difficult to find a piece of land, 2-5 acres, to build on, hence why I really wanted this block.
But I don't have the greatest feeling about the power easement, and I've noticed that the land seems to hold some water, so I think it would be smart to move on.
Hopefully something else will pop up.
Thanks again.

 

Is it a natural water course or dam? You find that alot on farmland - it's an asset.

 

Hi

As you have decided to move on from this particular block, would you be able to share it on propertychat?

Regards,

alicudi

 

The road is on a slight slant, and therefore rain water runs down into the property. It’s not a major issue, but it’s something to consider.

 

Happy to share if we don’t purchase it. I feel we should move on, but my other half doesn’t.

 

It's rural land & a natural feature. Flat land, loss of features etc are a result of development.