Prices float to top in flood-prone areas

It seems the 2011 Brisbane floods are becoming a distant memory which is sinking fast as house prices float to the top. 

Brisbane1

Analysis by RiskWise Property Research has shown in 19 of the 20 suburbs affected by floods, houses have out-performed the rest of the city.

This equates to 95 per cent of the major 20 flood-affected suburbs.

After the 2011 floods the perception among property buyers was these areas would be looked at negatively and prices would fall, or at least deliver very poor capital growth

But our research has shown the reality is completely different and the demand for them has eclipsed the negative perception.  

1-percent

This is because these high-flood areas are truly well located on the river which is in high demand.

Also, statistically floods like those in 2011 are a once-in-a-50-year event and that makes these homes a risk people are willing to accept.

There was a clear ‘risk versus reward’ equation that added up to strong growth in flood-prone areas.

It helps that some of these areas are subject to rezoning which makes them attractive to developers.

Brisbane Flood Prone Area V2.0

The Best Brisbane Investment Property2

When considering buying property in a flood area purchasers should do a risk assessment of the suburb, the type of property they want to buy as well as what the risk for the specific property was.

Also, that’s why we have insurance companies.

And while they have revised their product offerings and premiums, which no doubt will be quite high, it is still possible to get insurance.

The financial risk was now was lower than before the 2011 floods.

icon-podcast-large

Subscribe & don’t miss a single episode of michael yardney’s podcast

Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.

Need help listening to michael yardney’s podcast from your phone or tablet?

We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.

icon-email-large

Prefer to subscribe via email?

Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.


Avatar for Property Update

About

is the CEO/Founder of RiseWise Property Review. He has more than 20 years’ experience in risk management including, Co-Founder of Peleg, Kessel & Co, an assurance and advisory accounting firm & Executive Manager at Westpac Banking Corporation in Sydney. www.riskwiseproperty.com.au/


'Prices float to top in flood-prone areas' have no comments

Be the first to comment this post!

Would you like to share your thoughts?

Your email address will not be published.
CAPTCHA Image

*


facebook
twitter
google
0
linkedin
0
email
Michael's Daily Insights

Join Michael Yardney's inner circle of daily subscribers.

NOTE: this daily service is a different subscription to our weekly newsletter so...

REGISTER NOW

Subscribe!