Council Changing Road -> Property Devalue -> Any Options?

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AidanS

458 posts

Ultimate Geek

#173564 27-May-2015 19:24

Hi,

Got an interesting question, hopefully some people one here have some previous experience/knowledge regarding situations like this.

Basically, I live in (own) a house that is 1 house in from a corner of two roads. Here is a map photo of the intersection and houses.

The blue house has been bought out by the council and they are going to demolish it and move the road over so it cuts into the land, thus making the intersection go from a 3 phase to a 2 phase so all 4 roads are aligned perfectly. The update itself makes sense as this can be a very busy intersection at peak times and the 3 phase nature can be quite tedious.

However my house which is in red, has all 3 bedrooms on the left hand side in the image. Currently there is very little view to the road from these bedrooms and our backyard and property is very private considering how close our neighbours are.

This upgrade is going to remove a lot of our privacy, increase traffic noise and place the bedroom windows right over the main road. The house is raised (single story), so the windows are easily above any legal fence height.

My question is, are then any actions I can take to claim compensation for damage this project will cause to our property's value? The council already plan to fund the fence that will be built between the house and the road, as currently there is a 1 metre high chicken wire fence. This project will definitely devalue the property.

Thanks in advance for your replies!
-A.

EDIT: Worth mentioning this is on the North Shore, Auckland.

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2113 posts

Uber Geek

#1313028 27-May-2015 19:28

At least your rates might go down...

AidanS

458 posts

Ultimate Geek

#1313029 27-May-2015 19:30

mudguard: At least your rates might go down...

I feel like making this the answer as it's likely to be the only positive coming out of this

Geektastic

17942 posts

Uber Geek

Trusted

Lifetime subscriber

#1313043 27-May-2015 19:50

AidanS: Hi,

Got an interesting question, hopefully some people one here have some previous experience/knowledge regarding situations like this.

Basically, I live in (own) a house that is 1 house in from a corner of two roads. Here is a map photo of the intersection and houses.

The blue house has been bought out by the council and they are going to demolish it and move the road over so it cuts into the land, thus making the intersection go from a 3 phase to a 2 phase so all 4 roads are aligned perfectly. The update itself makes sense as this can be a very busy intersection at peak times and the 3 phase nature can be quite tedious.

However my house which is in red, has all 3 bedrooms on the left hand side in the image. Currently there is very little view to the road from these bedrooms and our backyard and property is very private considering how close our neighbours are.

This upgrade is going to remove a lot of our privacy, increase traffic noise and place the bedroom windows right over the main road. The house is raised (single story), so the windows are easily above any legal fence height.

My question is, are then any actions I can take to claim compensation for damage this project will cause to our property's value? The council already plan to fund the fence that will be built between the house and the road, as currently there is a 1 metre high chicken wire fence. This project will definitely devalue the property.

Thanks in advance for your replies!
-A.

EDIT: Worth mentioning this is on the North Shore, Auckland.

I can only phrase this for you in UK terms because it is what I used to do for a living (or one aspect of it). I have never practiced here so I do not know how it works but the basis of much of NZ law is UK law so it may well have something at least similar.

There you would make a Part 1 claim under the Land Compensation Act 1973 in relation to what amounts to a reduction in value caused by the works.

Here I assume something similar exists. My advice would be consult a lawyer or a valuer (since there are no Chartered Surveyors in NZ). Reasonable professional fees are usually part of any claim as well.

oxnsox

1923 posts

Uber Geek

#1313061 27-May-2015 20:28

Of course there is the bonus that you may be able to negotiate access off the
other (less busy) street?

If there is a way to claim you'd have to be able to quantify the value change of course, and going from a back section property to one with a road frontage may theoretically improve things???

Ultimately though you should take this up with the council as they will be responsible for the new fence and plantings that their chosen contractor will provide. Remember with councils, it's the squeaky wheel that gets the oil.

Disrespective

1925 posts

Uber Geek

#1313105 27-May-2015 21:05

Talk to a property lawyer.

Have they given you a surveyed plan of how much you will have between your boundary and the road?

JimmyH

2886 posts

Uber Geek

#1313106 27-May-2015 21:06

You might also be able to object to the resource consent, given what it would do to your property?

It seems like you have enough at stake to justify consulting a lawyer on your options. I would do this, rather than rely on random GZ suggestions and thoughts.

Fred99

13684 posts

Uber Geek

#1313108 27-May-2015 21:09

I'd rate the chance of being able to gain compensation as close to - if not completely - zero.

There is provision for compensation under the Public Works Act (1981) where "no land is taken" - but section 63 (1) (b) states:

"the injurious affection is not caused by changes of traffic flows arising out of the opening of any new road or motorway or the widening, upgrading, or deviation of an existing road; and..."

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mudguard

2113 posts

Uber Geek

#1313109 27-May-2015 21:10

I know this intersection actually. I guess for things like this there is no due diligence when a council decides to reroute a road. I have friends in Te Atatu Peninsula near the new bus interchange and the roadworks have been non stop day and night for about six months.

Journeyman

1186 posts

Uber Geek

#1313114 27-May-2015 21:21

This upgrade is going to remove a lot of our privacy, increase traffic noise and place the bedroom windows right over the main road. The house is raised (single story), so the windows are easily above any legal fence height.

My question is, are then any actions I can take to claim compensation for damage this project will cause to our property's value? The council already plan to fund the fence that will be built between the house and the road, as currently there is a 1 metre high chicken wire fence. This project will definitely devalue the property.

If you want money, talk to a lawyer. Honestly though, house prices in Auckland are on the increase anyway and windows being near to the road is probably not going to make much difference. You could try getting a property valuer to have a look and see what difference it would make.

If you want a better/higher fence, you'll need to nag, complain and moan about the issue. The squeaky wheel usually gets oiled (source: brother is traffic engineer). Of course, if they build you a nice fence then you may not then be able to ask for money on top of that.

mattwnz

20141 posts

Uber Geek

#1313191 27-May-2015 23:25

How do you know the change is going to reduce your properties value? Potentially you may find there will be less buyers, as there will be people who don't want to live next to a busy road, but that doesn't mean a loss in value. Maybe ask the council to build a concrete block wall, as I know first hand that that stops a lot of noise. Also possibly ask them to install double glazing on the side of the house affected.
But is such a change may lead to a loss in value, are the council required to compensate. They will look at affected parties, so maybe you haven't been identified as an affected party.

One thing you need to be aware of is that councils have a huge amount of power. So I would suggest that you check that the process for this change has all been done correctly. They should have flowcharts showing their processes.

cyberhub

224 posts

Master Geek

#1315278 31-May-2015 23:05

mattwnz: How do you know the change is going to reduce your properties value? Potentially you may find there will be less buyers, as there will be people who don't want to live next to a busy road, but that doesn't mean a loss in value. Maybe ask the council to build a concrete block wall, as I know first hand that that stops a lot of noise. Also possibly ask them to install double glazing on the side of the house affected.
But is such a change may lead to a loss in value, are the council required to compensate. They will look at affected parties, so maybe you haven't been identified as an affected party.
One thing you need to be aware of is that councils have a huge amount of power. So I would suggest that you check that the process for this change has all been done correctly. They should have flowcharts showing their processes.

What I have been reading about the house prices in Auckland, I would be surprised if your house value went down because of this. However it is obviously not as good for you. So you may want to consider fence, tree, trellis route.

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Wade

2225 posts

Uber Geek

#1315429 1-Jun-2015 11:21

You are gaining a road frontage of sorts, it could even improve value?

nickb800

2715 posts

Uber Geek

Trusted

#1315431 1-Jun-2015 11:25

Just a thought - try to get the council to fund an independent building inspection pre and post roadworks, so if you get any plaster cracking etc as a result of roadworks vibration you can prove that it wasn't pre-existing and get them to pay for repairs. I know NZTA have arranged inspections for hundreds of houses around an expressway under construction down in Wellington - can't see why council shouldn't have to

bfginger

1267 posts

Uber Geek

#1317109 4-Jun-2015 05:47

This upgrade is going to remove a lot of our privacy, increase traffic noise and place the bedroom windows right over the main road. The house is raised (single story), so the windows are easily above any legal fence height.

It should be possible to reduce traffic noise by installing double glazed windows with sound control glazing. Installing batts in the walls would go a long way to reducing traffic noise if you don't have wall insulation.

Geektastic

17942 posts

Uber Geek

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Lifetime subscriber

#1317270 4-Jun-2015 11:06

At the very least, a lawyer or valuer acting on your behalf ought to be able to negotiate remedial works such as noise reduction measures etc I would have thought.

A letter to the Council's legal department along the lines of "my client is affected by your works on such a road and wishes to notify you of his intention to make a claim against the council under (insert law). Please advise to whom such a claim should be addressed" etc etc should shake something out of the woodwork.

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