Is there any problem in buying such property? (plz chk images in post)

For our IP hunt, agent has offered us a Land(only) lot in Park Avenue ( 23 Nelson Rd, Box Hill)
https://www.parkavenueboxhill.com.au/

350sqm ($510k)
But looking at the layout/satellite view we see some transmission line pretty close to it.
Is there any concern/issue in buying such property?

 

How far is the transmission line away?
It can cause issues with finance and also for onselling - many people are nervous of the long term effects of being close to power lines.

 

Distance will be the critical factor when it comes to power-lines as well as LVR. Will you be in LMI (lenders mortgage insurance) territory as they can be a bit funny if they are to close. My guess is 250m so should be ok with that and best to go with a lender with DUA (direct underwriting authority) as this will keep LMI out of it, if you are concerned.

 

Why would you spend 510k on a 350sqm block of land with no house that is nearly 50km from the CBD and right under power lines? Where do Sydney prices sit in the property cycle? I think you should ask yourself those questions before you buy anything.
I think there is better value in other cities

 

Proximity to the towers/transmission lines is the biggest factor. As noted above, too close is too close.

 

Avoid.

The fact that you are asking the question shows your concern. If you go ahead, future buyers will have the same question and reservation. It will also concern future tenants which will translate to higher vacancies and lower rent as the property will be less desirable.
Marg

 

The critical thing to look at is overall cost and expected valuations. Just be very cautious of a market slump that effects valuation on completion of build. It is very important that you don't over-capitalise the construction ( avoid too many bells and whistles ).

How long until the land registers and construction could start? I'm guessing a minimum of 12-18 months for registration. Then allow 9 - 12 months for construction by a volume builder, can pull the build to 6 months with a smaller builder. You would be looking at a mid to late 2019 completion at the earliest.

See what the auction results and medians over the coming weeks/months indicate. If they continue declining (and it is significant compared to previous years results) I would continue saving to take advantage of a correction and desparate developers. You might see better price competition among builders too.