Real Estate Industry criticizes wind turbine report

2014_06010032Canadian Real Estate Wealth, Jenifer Paterson
A recent study by the University of Guelph, which found wind turbines do not have an impact on nearby property values, might have earned a big sigh of relief from investors – but the study’s results have been strongly criticized by members of the real estate industry.

“I have had several deals fall apart in this area because, in the appraisal report, it has been mentioned that there are windmills visible or adjacent to the property and, once a lender gets wind of that (forgive the pun), they will not fund a mortgage,” said Angela Jenkins, a mortgage agent at Dominion Lending Centres, who lives and works in the Melancthon region, where the study was conducted.

“If a person cannot get financing due to windmills, then how can this be a positive thing?” The study, which was published this month in the Canadian Journal of Agricultural Economics, analyzed more than 7,000 home and farm sales in the area, and found that at least 1,000 of these were sold more than once, some several times.

John Leonard Goodwin, who has been a real estate broker for more than 10 years in the Grand Bend, Ont. market, asserted that wind turbines absolutely do affect property values. “Turbines complicate your property enjoyment, period,” he said. “That alone spells depreciated value(s). Read article

13 thoughts on “Real Estate Industry criticizes wind turbine report

  1. The mortgage lending thing – and, nobody knows anything!

    ‘[excerpt] “I have had several deals fall apart in this area because, in the appraisal report, it has been mentioned that there are windmills visible or adjacent to the property and, once a lender gets wind of that (forgive the pun), they will not fund a mortgage,” said Angela Jenkins, a mortgage agent at Dominion Lending Centres, who lives and works in the Melancthon region, where the study was conducted.’

    It’s a complete mystery –
    if the mortgage lender – has a perception – and, the deal doesn’t feel right.

    I love real estate – don’t you?
    Go with your gut!

    • It’s no mystery. If lenders think they can’t get back the money they loan for any reason there will be no mortgage.

      The “study” that was done will have to be proven wrong and withdrawn. Otherwise the study is circulating on the internet and being used.

      Supposing a water tower was installed near houses? This will affect the property values of nearby properties.

      • In the case of farms, this leaves only the farm land to get a mortgage on and not any buildings on that land. Maybe a barn or two would be included.

        Families that have severed land for children’s houses are stuck as there isn’t enough land for them to get a mortgage on the land itself or at least not much of a loan.

      • Yeah – it must really suck being a real estate agent……..
        you drive a client around and around,
        you invest time and energy
        – and, then you find out
        wind turbines – are interfering with your deal.

        Yeah – that really must suck!
        Let the real estate agent beware.

  2. You can’t even sever lots in Dufferin County anymore. Haven’t been able to for some time.
    I guess investors in windturbines, quarries and corporate food source farms don’t want litttle houses to be a pain in their ass. Not that they would care anyway. Long terms plans implemented many years ago.
    And what do voters know about all this going on behind the scenes?
    Nada

    • This is the issue when media don’t/won’t talk to the people actually living there. They just go with what the “experts” say and print their canned quotes taken from a media release.
      I’m glad the article was published.

    • True, can’t sever off lots anymore in many places but those that already are severed are stuck.

      Urban voters know nothing about these issues.

      Say you have a total farm property worth $1 million with a house valued at $100 K on it, then the house becomes unlivable then you have lost 10% of the property value. The farm land itself still retains its market value.

      All that can be mortgaged is the workable farm land land itself. The mortgage value of the house is 0%.

      People expect to buy a farm with a livable house on it so they won’t buy the property if the house can’t be lived in.

      • if you could sever off the land that the house is on then the farm land itself could be sold and you could move someplace else.

        At least your loss would not be so great.

  3. It is true that the “farm” land still has value, but in the case of a friend who fought against the wind project in are area – they had hoped that the generations farmstead and farmland would be a place for their son to live and farm. Of course they could live in town, but that wasn’t the idea.

    • Was just mentioning the financial aspects and not the social implications involved which you can’t put a price on.

      It means a great deal to families as we had to sell a pioneer farm because there was no one left to work the farm.

  4. If the government etc. are SO confident that IWT do not affect property value/ cause health issues etc. then the government should back the loans of potential buyers or require lender not to discriminate based on proximity to turbines or purchase the property themselves for turbine pre-accessed value. It is not fair or just to the homeowners who want out due to health issues and can not sell because a purchaser can not get lending due to the turbines. Better yet, the turbine companies should at least be on the hook for the difference of the home’s pre-turbine announcement value minus the post turbine value – plus whatever B.S. MPAC is saying the home has recently appreciated. (what a joke!).

  5. Add this to the real estate woes:

    CBC My Region, Windsor, Sept.12, 2013
    “Rooftop solar panels pose dangers, Ontario fire chief says”

    “Firefighters across Ontario are raising concerns about alternative energy sources, particularly solar panels.”

    See comments about roofs on newer houses.

    http://www.cbc.ca/m/touch/canada/windsor/story/1.1700070

    ——————————————————————————————–

    CTV News, Toronto, Jan.31, 2014

    “Engineers work to secure rooftop solar panel after partial collapse”

    Apartment building on St. Dennis Dr. – Aluminum struts holding up the solar panel collapsed.

    This news article also has several photos of this event at a large apartment building. Solar panels almost covered the whole roof.

    http://www.toronto.ctvnews.ca/engineers-work-to-secure-rooftop-solar-panel-after-partial-collapse-1.1664419

  6. school studies like that make me want laugh. These people don’t live in the areas and no matter what they do they still have no clue. But publish them on our behalf generally again at our expense.

    The actual residents know better, I’ve been into buying land for years and know that the only homes/farms going up now days are simply places that are in or will be in a windfarm getto.

    Even really nice farms that are a very decent price sit for many months to a yr.
    That’s not common at least it didn’t used to be.

    Residents are all too knowledgeable of what is set to come to that beautiful farm.

    The only ones buying are newbies that are in for a big surprise that they bought into an area set to be an industrial wasteland. The school studies aren’t privy to this, are they out and about with future area projects in hand? I doubt that.

    So we pay our tax monies to fund thier feel better studies for what!?

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