Hi all,
We are looking at buying property in regional towns in Victoria. I just wanted to ask some general questions – some properties I find are located near the CBD and are in already developed areas and well populated. However, I find in the Section 32 of some properties to state that it is in a bush fire prone area and having mining activity in the past.
1. Does this have an effect on how the bank decides it will loan you money, or does it depend on the amount of risk they think the property has?
2. Is there a level of fire risk I can find for a property?
3. Would this have a negative effect on the property’s value?
4. Some of them also show mining activity in the area and the land that the property sits on had a mining license (expired now), but states that no mine has been found on the property…so far. If we’re looking at subdivisions, does this spell trouble and should we not bother?Any insight and advice would be greatly appreciated.
Thank you.
Mining could result in subsidence. You would need to see what effectthst would have on development
You need to check the zoning of the blocks you are considering. In some mining areas there are overlays that may mean you have to do a clean up because of contamination. The least you would have to do is commission a report about potential contamination and clean up. I have heard recently if your block is in a bushfire prone area you will need to commission a risk assessment report – a “BAL” report (Bushfire Alert Level?). The BAL report will effect what, how, where you build on a block, possibly if you can even build at all. At the extreme could add $60k to an individual build (based on discussions with a real estate agent I respect) hence effect property values.
BAL = Bushfire Attack Level, rather than aalert level. I would also talk to council town planners for the particular area after you have done some of the above research.
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