Advice on house

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Topic Author
vbsrisri
Posts: 47
Joined: Sun May 22, 2016 9:18 pm

Advice on house

Post by vbsrisri »

Hi Bogleheads,

This is my first post, I hope this post is along the rules posted. I need advice from peers on what to do in my situation.

Couple of years back, we brought a house who price is less than 300k, with 15 years Fixed Mortgage at good interest rate. This house is located in good schools with ratings of 10. While buying this house, following principals of finance and life, we brought a house within our price range and we are happy with it. But recently few incidents out side our control, power company has decided to put 138KV lines behind our house and they are appx 300 feet from my house. Most of the community members are fighting against this, but I want to get advice on worst case scenario.

What should I do in this case? These lines are going to come after 6-7 years. This issue is effecting my peace, we brought our small beautiful home with in price range, but never expected this. Right now market is in hype mode, we are not sure if we need to sell this house and buy new one. We don't have plans to sell our house currently? but not sure what effect this issue is going have on house price.

Please share your suggestions, I had reached forum as last resort to seek advice. Thanks in advance.

Note :- we don't have any debt our than house mortgage. We save and max out 401k contributions.

Thanks.

vbsrisri
curmudgeon
Posts: 2159
Joined: Thu Jun 20, 2013 11:00 pm

Re: Advice on house

Post by curmudgeon »

300 feet is far enough that I think the affects on your house value would mostly be aesthetic. That is, if you had a nice view out that direction, and it gains powerlines in the middle, it will have some negative impact to value. The degree would be specific to your location and RE market. I might think about planting a line of trees along that side of the property if you have space. Maybe try to find someplace with similar existing lines and distances, and see what you think about living with it.

It's hard to say, but I suspect right now wouldn't be a good time to sell, as there will be a lot of negative speculation in the air, which might cause overreaction on the part of buyers.
WhiteMaxima
Posts: 2282
Joined: Thu May 19, 2016 5:04 pm

Re: Advice on house

Post by WhiteMaxima »

sell and move
btenny
Posts: 5557
Joined: Sun Oct 07, 2007 6:47 pm

Re: Advice on house

Post by btenny »

If you are 90% sure the power lines are going in I would sell now or as soon as the noise about the lines dies down. The key is to get out before construction starts or some law suits about the lines start and so forth. If any of that happens it will dampen your resale value and maybe kill any sale at all for the foreseeable future. The issue is if some lawsuits start you may end up with a home that cannot be financed AT ALL by any mortgage company. Banks do not want to be involved in property disputes and the issues surrounding immanent domain.

But if there is some good likelihood of the lines not going in at all or for a very long time, say 2026 or longer, you might gamble and enjoy the house for a few more years. But beware the lawsuit issues and how they may impact your property values.

I know this is a real bummer but I am not sure there is anything to do but move. Sorry.

Good Luck.
joebh
Posts: 1708
Joined: Mon Mar 02, 2015 3:45 pm

Re: Advice on house

Post by joebh »

vbsrisri wrote:This issue is effecting my peace, we brought our small beautiful home with in price range, but never expected this.
If the thought of power lines potentially going in 6-7 years down the road bothers you that much, then sell now and buy elsewhere.

Some folks wouldn't want to be this close; others wouldn't care as much.
Topic Author
vbsrisri
Posts: 47
Joined: Sun May 22, 2016 9:18 pm

Re: Advice on house

Post by vbsrisri »

Thanks every one for the advice. Just additional information, 12 feet concrete wall runs behind my house and school ratings are good. If its normal market, I too would try to sell, but I already feel there is hype of 15-20% in the market, as every one wants to be in this school district and already most of the buyers might be aware of this issue too. If lines are approved, there are going to be constructed in around 2020-2022.

I personally want to move too, but factors which are stopping my decision are "high prices in the market","already paid 1/3 of mortgage". My thoughts are to live in this house until the market hype reduces or their is correction, then try to sell this house and in worst case use it as rental property.

Finally I am afraid that in this crisis mode "I will buy another house in hype market and commit same mistake as I had done with this house".

Please let share your thoughts based on provided additional information.
WhyNotUs
Posts: 1868
Joined: Sun Apr 14, 2013 11:38 am

Re: Advice on house

Post by WhyNotUs »

Do you have kids to attend these good schools? If so, I would sit tight and wait to see what happens down the road. 300' from a 138 kV is not something that I would go looking for but the electromagnetism is typically fairly close to the lines, there is a chance that the line will not happen and you seem to want to stay.

Over time, I think good schools will maintain your value more than a power line 100 yards away will diminish it. At the same time, if you or your spouse are fearful of the EM or think this issue will take over your life, then move.
I own the next hot stock- VTSAX
Topic Author
vbsrisri
Posts: 47
Joined: Sun May 22, 2016 9:18 pm

Re: Advice on house

Post by vbsrisri »

Thanks @WhyNotUs for the advice. We don't have kids yet. Decision to stay is based on current finance and we love this house. If I would have option to sell the house and buy another house in same area with 20% hike, I would do that, but current market rate is 30-40% high.

I will try to grow beautiful garden and plant high trees as suggested by "@ curmudgeon" and reevaluate the situation in 2-3 years. As of now this issue is taking heavy toll on me, but as of now I think its better to concentrate more about family and profession.

Thanks everyone for suggestions and taking time to answer my query.

This is my first post in this group, but I already love this group.
furnace
Posts: 336
Joined: Tue Oct 20, 2015 3:38 pm

Re: Advice on house

Post by furnace »

joebh wrote:
vbsrisri wrote:This issue is effecting my peace, we brought our small beautiful home with in price range, but never expected this.
If the thought of power lines potentially going in 6-7 years down the road bothers you that much, then sell now and buy elsewhere.

Some folks wouldn't want to be this close; others wouldn't care as much.
The homeowner may be over reacting. It's inconclusive whether power lines cause any health damage. For example, birds perch on power lines and they seem okay. You are 300 feet away. Plant some trees and forget about it. In my city the high voltage power lines cut across the city, and many people just shrug.
orca91
Posts: 1223
Joined: Thu Mar 03, 2016 7:17 pm

Re: Advice on house

Post by orca91 »

vbsrisri wrote:Thanks every one for the advice. Just additional information, 12 feet concrete wall runs behind my house and school ratings are good. If its normal market, I too would try to sell, but I already feel there is hype of 15-20% in the market, as every one wants to be in this school district and already most of the buyers might be aware of this issue too. If lines are approved, there are going to be constructed in around 2020-2022.

I personally want to move too, but factors which are stopping my decision are "high prices in the market","already paid 1/3 of mortgage". My thoughts are to live in this house until the market hype reduces or their is correction, then try to sell this house and in worst case use it as rental property.

Finally I am afraid that in this crisis mode "I will buy another house in hype market and commit same mistake as I had done with this house".

Please let share your thoughts based on provided additional information.
So, you want to wait until the price/value of your house goes down to sell it? I'm not sure you're thinking correctly there. You should want to sell it for as much as you can, right?

It tends to be all relative. If you think the market is high where you live now, it's good for you as a seller. You may be buying the next house at a higher price than you would like, but you just sold your old one for more than others would like. If you wait for the market to go down, then you make less money on the sale.

Or, maybe it goes up another 15% from where it is now before it drops 10%. Are you better off then? Or, maybe it doesn't go down for a long time...

Don't try to time it. Or, sell now when you think the market is high and then rent and wait and hope the market goes down to buy the next one... if you really want to try to time it.

If the potential power lines bug you that much, then move.

I used to live in a neighborhood where power lines ran through about 500 feet from my house. The didn't bother me at all. Barely noticed they were there. You get used to it and don't even give it a thought day to day. If you really like your current house, you may want to consider just staying put. They probably won't bother you as much as you think they will.
krannerd
Posts: 117
Joined: Sat Jun 25, 2011 12:05 pm

Re: Advice on house

Post by krannerd »

Why not go on a "fishing expedition" with your current house? You could have several realtors provide you with estimates of the value of your house and compete over their commission. Based on that information of potential sales prices...you could check out alternate neighborhoods and see what you could get for your budget.

Then you can assess for yourself if the threat of powerlines in 5-7 years is worth $xx,xxx.

In terms of your concern about buying another house where something like this will happen...unforeseeable. And, since you're theoretically selling into an inflated market...hopefully your sold house will also be inflated as much.
KlangFool
Posts: 19680
Joined: Sat Oct 11, 2008 12:35 pm

Re: Advice on house

Post by KlangFool »

krannerd wrote:
In terms of your concern about buying another house where something like this will happen...unforeseeable. And, since you're theoretically selling into an inflated market...hopefully your sold house will also be inflated as much.
krannerd,

That statement is not totally true. For example, if the area around the house is totally built, it is less likely not going to change in the future. If there are empty lands around a house, you may not have any idea what will happen in the future.

KlangFool
Topic Author
vbsrisri
Posts: 47
Joined: Sun May 22, 2016 9:18 pm

Re: Advice on house

Post by vbsrisri »

@ furnace :- Thanks for taking time to comment. You might be correct, I might be overreacting. This is our first house and everything is new to me. We have put hard earned money into it, so might be over reacting.

@ocra :- Thanks for taking time to comment.If this issue doesn't exist, I don't want to sell this house unless I move out of the country. Yes Market is high in our area, but people are already aware of this issue, so Market being high may or might not have effect on houses which are close to these lines. Technically these power lines might not effect me much, because we have 12 feet concrete wall(we can hardly see lines) and I am planning to grow big trees as other suggested.

@kranned :- Thanks for your suggestion. I will go for "fishing" expedition. Yes definitely Market is inflated, but does that hype apply to our street too behind whom these lines run.

@klangfool :- Thanks for taking time to comment. Area around my house is totally built. There are no empty lands in this entire school district and every one wants to move into this school district.

Here are pro's and cons :-

Pro's :-
1) Sell house with less hit while market is high(But already every one knows about these lines. So buyer is already aware of this issue).
2) Use this house as rental property and search for new house when everything stabilizes.
3) Be prepared for hit, but instead of worrying improve other sources of income and improve my technical knowledge.

Cons :-
1) More high priority issues than this issue.
2) Next house we like might not be in our price range. My personal preference, to have sound sleep instead of buying house which is not in my range and worrying about payments.
3) I might move back to my home country.

Thanks all for the advices.
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