Hi Everyone
I went through some properties with an agent last week and in many cases they were in an area that experiences a 1 in 100 year flood (e.g.they back onto a creek, or a spoon drain etc.) Should I avoid buying any property that has this condition? I am a liitle unsure as I would like to renovate and then sell again and am worried this would deter the prospect of future buyers. I would appreciate any feedback from anyone with experience in this area.
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ThanksGina S
Hi Gina, If you dont mind me asking, what suburbs are you looking at?
Never take an agent’s word for anything. Do your own checking when doing a due diligence on a property to find out the facts.
Ask at the local council about how often the floods occur, when the last one was, whether the property in question was affected etc.
Certainly the prospect of a possible flood will put off a lot of buyers for your newly renovated property.
Cheers,
Marc.
[email protected]“we get sent lemons; it’s up to us to make lemonade”
Hi Gina,
Are you talking about brissie?
Our last ppor was below the 1 in 100 flood level.I agree with Marc it
does put some people off when selling.I dont know about elsewhere but here if you are below the level you can not build any bedrooms, kitchens rumpus rooms etc below the level , even though the original house may be.
You are however allowed to have an office , study and storage room.
This lead to alot of additions not being council approved , so if there are any alterations to the original house it would pay to ensure they are approved.
cheers
LWStay away from them. You only need to ask anyone from Rocklea or Sherwood about 1974. Oh and fool anyone that thinks it can not happen again.
If it is cheap – – um – – good chance a reason exists.
[specool][cigar]
Hi Gina,
As LA Aussie and LW mention you should pay your local Council a visit as they will usually pull up the property details onscreen, and they can instantly confirm any restictions such as flooding, undermining, sewer/water mains etc. For a small fee they may even give you a printout to take home.
Often the Council won’t allow the block to be deveoped or subdivided if its under a 1 in 100 level.AmandaBS
http://www.propertydivas.com.au
FREE online Property Resources“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
It might be all well and good to by the property do it up and have no trouble with flood water, some houses even have experienced floods everyone of the floods that have gone through and it doesn’t damage the house.
But try telling that to the Finance company when they look at the flood zoning. They will then say that to lend against the property (to buy it) you will need LMI. and you ask the LMI and then it gets difficult as a lot will not lend against a flood zoned house.
So doing the house all up is well and good and seems though can work in some areas, often the houses are cheaper because of these problems. But it will be someone that has CASH to buy it so may limit the amount of people that can buy it because they will not get a lend with a normal 20% deposit IMHO.
They are often in areas that only suit a rental and so may not attract a say family buyer in the future as well. But certainly can be good rentals and come close to +CF lot of the times.
Carefully think it out though. They are problematic sometimes or most times which put most off but if you go in a do what 90% might not you can make money I thinks.
I have looked at flood zoned houses, agent didnt know , said it was flood zone, then got to the Council to do checks, council compliments on how most people do not do these important checks. Then I found out it was the only house in the street that did not have the restrictions of every other one up the street. This discovered bonus bonuses
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