Tips For Buying or Building a House Near Power Lines

Are you considering buying or building a house near power lines?

Homes near power lines are much more affordable, making them particularly attractive to first-time homebuyers and investors.

In Australia, vast landscapes and expanding urban areas frequently intersect with extensive power infrastructure.

In this article, we’ll dive into the considerations of buying a home near power poles and power lines, and essential information you should know, including:

• Insurance and Financing
• Property value and resale
• Visual and noise issues
• Health concerns

What Does ‘Near Power Lines’ Mean?

Everyone’s definition of ‘near’ will be different. When purchasing property, we discuss properties close to overhead power lines.

There are no specific distances; however, a power line is considered close if it is within 100- 200 m or less, and the distance varies depending on local state regulations.

The closer the property is to high-voltage power lines, the greater the challenge when securing financing and insurance. Additionally, there’s a heightened risk of health issues.

EMFs and Health

Despite some claims, there is no hard evidence that living in proximity negatively impacts your health.

However, while studies have not conclusively proven a link between electromagnetic fields (EMFs) and health issues, it hasn’t stopped people from worrying about EMF exposure, which is a type of radiation that can cause headaches and possible irreparable cognitive damage. There is also talk that long-term exposure to EMFs causes cancer.

While considering the possible health implications of living near high-voltage power lines, the noise is another valid concern. Did you know power lines emit a cracking or humming noise, especially in wet weather? While the noise is not loud, it’s not what everyone wants to hear regularly.

If you’re considering building a house, possible solutions to noise include roof, wall, and floor insulation, as well as double— or triple-glazed windows.

Plus, if the power lines are within 200 metres, you’ll see them, and no matter how positive you are, power poles and lines are unsightly and unappealing.

If you haven’t been put off yet, here’s what to consider when purchasing a home near a power line.

Does The Type of Power Line Matter?

Once you know the type of power line near your property, you can work out the risks.  For example:

• Is it a transmission line or a distribution line?
• Is it a large steel structure or a thinner wooden pole?
• Is it an insulated or bare power line?

The type and material of these powerline structures affect not only the property’s visual appeal but also its perceived valuation. Many videos, including this one, discuss the impact of living near powerlines.

Will The Bank Provide You With A Mortgage?

The jury is out, so to speak, on how many banks will provide home loans for properties near power lines. However, a property directly under power lines will struggle to find a bank to provide the financing. This is when a second-tier lender is a better option.

However, all lenders have specific lending requirements, such as a higher deposit. You may also need to agree to an in-person meeting with the lender.

Will Your Property Be Insurable?

Some insurance companies may consider homes near power lines to be higher risk, potentially leading to increased premiums or specific exclusions.

The closer your property is to high-voltage lines, the higher your insurance premium will be. For example, QBE Insurance does not provide policies to homes within 50 metres of high-voltage power lines.

Future Plans, e.g, Zoning

Are you planning a swimming pool in your backyard? For obvious safety reasons, it can never be built under a power line.

Are you planning to subdivide? Power lines and associated easements may impact your plans and reduce the usable land area.

Zoning regulations and local building codes will dictate what is permissible near power lines, and it’s essential to consult these guidelines to ensure compliance and safety.

Finally, does your local council plan to convert to underground power? If so, this could alleviate concerns about overhead power lines. However, in the meantime, check for any easements related to power lines on the property.

Easements grant utility companies the right to access and maintain power lines, which could restrict land use.

Powerlines and Property Value

Homes near power lines are cheaper to purchase than similar homes in the same neighbourhood.  While all homes appreciate over time, powerlines will keep property values modest due to factors mentioned earlier, including noise, poor aesthetics, and perceived health implications.

Maintenance disruptions are also likely to deter prospective buyers. Legal restrictions and easements on properties near power lines will limit land use and development, impacting property desirability and value. Consequently, properties near power lines typically sustain lower market values and slower appreciation rates.

Getting Started

If you’re considering purchasing or living near power lines, here are some practical steps to help you make an informed decision:

• Assess EMF levels: Consider hiring a professional to measure electromagnetic field (EMF) levels at the property.
• Mitigate noise and visual impact: Explore options like planting trees or installing insulation and double-glazed windows to reduce both noise and visual disturbance.
• Ask the right questions: Speak with your real estate agent, local council, and utility company about easements, plans for undergrounding power lines, and any restrictions.
• Review essential documents: Obtain and review zoning certificates, easement maps, and insurance policies to understand any limitations or risks.
• Learn from others: If possible, talk to neighbours or previous owners about their experiences living near power lines.
• Evaluate resale prospects: Research how similar properties have performed on the market and get advice on negotiation strategies if you are concerned about future resale value.

By following these steps, you can better weigh the pros and cons and plan accordingly.

Summing Up

Do your research before buying or building a home near a power line. Always consult your local council, real estate professionals, lenders, insurers, and your lawyer before signing a purchase contract.

Even though properties near power lines often face challenges in valuation, marketability, and financing, with careful planning and expert consultation, it may make sense to proceed with the purchase.