Hi All,
I'm based in Ipswich, but well above the predicted flood peaks…
I'm just about to place an offer on a new deal (which is also in Ipswich and well clear of any future floods) and I'm curious to know peoples thoughts on how these floods, the damage they've caused and the cost they've added to our community/nation will affect property prices ??
I know it would all be 'opinions' at this stage, but what do you think…will prices drop, will this natural disaster have any impact to warrant concern ??
I'm also looking to list a Reno i've just completed at the start of Feb…
Anyone have any relevant data/facts that they can shed on 'Property' in times like this ??
Thanks in advance – I hope you and your families are all safe…
Cheers,
Darren
Firstly my thoughts and prayers are going out to all those affected by the floods it is such a tradgedy.
I am also after a bit of info in regard to this post.
I have just signed a contract on a house in Toowoomba. Although it was flooded yesterday the flooding will not be as bad as what Ipswich and Brisbane will get.
I have not experienced a natural disaster before. Although I live in Melb and we had the tradgedy of the fires this was somewhat limited to regional smaller communities.
Can anyone give their thoughtss?
Anyone?
With all due respect Fredo and Darren. As much as this information might seem important here and now, there are bodies that are not recovered yet in the two towns you are speaking of.
Your investments are no where near as important as the Lives ruined by this tradgedy. Be thankful it wasn't your house or your loved ones washed away in this disaster.
Respectfully,
Dave
Whilst being mindful of the mammoth scale of the flooding occuring at the moment in QLD and the very sad loss of human life – you may find unaffected/habital properties in these areas to be in high demand.
This certainly was the case in Kinglake (to my girlfriends property) after the bushfires as people hunted out something they could live in rather than rebuild
Edited to add – these floods could be a catalyst for a recession, just my thoughtsdnshull wrote:With all due respect Fredo and Darren. As much as this information might seem important here and now, there are bodies that are not recovered yet in the two towns you are speaking of.Your investments are no where near as important as the Lives ruined by this tradgedy. Be thankful it wasn't your house or your loved ones washed away in this disaster.
Respectfully,
Dave
haha, I just had to sign in to respond to this….are you kidding me Dave, how can you interpret these questions as an indication their
not thankful their loves ones weren’t washed away or it wasn’t their house effected. I see what you’re trying to do, stand up for those that were, but you’re way off mate.we had to leave our place in east Brisbane this morning and you know what I even called my insurance company….oh wait, but this means I’m disrespecting those that have lost loved ones…
perhaps change you’re way of thinking otherwise you’ll remain of grumpy sour man.
I say all this ‘respectfully’ of course!
Justin
dnshull wrote:With all due respect Fredo and Darren. As much as this information might seem important here and now, there are bodies that are not recovered yet in the two towns you are speaking of.Your investments are no where near as important as the Lives ruined by this tradgedy. Be thankful it wasn't your house or your loved ones washed away in this disaster.
Respectfully,
Dave
Dave I understand your concerns. My intent was not to disrespect those that have lost loved ones.
It was a mere question. And yes I have two properties under water up to the roof line. So im just trying to look after my families interest. Im sure alot of people are curious as to what my happen. I happened to be the one that asked it.
Wow…certainly not what I was expecting to read (or intended) with my post…apologies if it did offend anyone…
The main reason behind the post was due to my desire to learn and discuss the situation beyond what was being shown on TV, especially how an economy recovers from such an impact, what it means for the Community in which I live…The News at the moment is focussing on the issue at hand (which is certainly warranted)…I'm trying to predict what this means for QLD'ers, and even the nation over the next 6-24 months…it may sound selfish, but this is my place of business, I need to rely on the market in SEQ (particularly Ipswich)…It's a little nerving having a contract still in the Due Diligence phase, wondering if I should let the deal pass by…especially when it'll cost close to $1mil to complete…
I've been out all day in Ipswich helping where I can as well as inspecting family and friends properties which they cannot get too…unfortunately there are some that are under…and a key thing to note is that a few places I nearly bought 6 months ago, which based on current maps state that they would not flood, have water through them (so the water has broken well past Councils Prediction)…
Based on the data I've seen over the last 12 months, Brisbane is very close to, if not at, the bottom of it's cycle…what does this mean for the city, the state ??
Will those properties in flood zones dramatically fall in value, will this fall affect the surrounding suburbs ??
Will the elevated sections of suburbs in affected area's go up in value given height is in the forefront of peoples minds ??
How long will the property market stall given the mammoth clean-up task we are facing once the waters sub-side ??There's lots of questions racing through my head regarding this and when the time is right for people, i'd like to hear their thoughts…
Thanks for the contributions to date…it goes without saying that we all feel for those affected, it's a Value that's well engrained in the Australian culture…
Take Care…
Cheers,
Darren
Hi Darren
Do you think you can hold off buying in the area for a while? I’ve got a few meteorologist friends and they’re warning all and sundry not to get hopes up too high that this will be a one off event. It’s very early in the wet/storm season for Queensland, and with little room for more water anywhere and with cyclones still a chance for the SE coast as a result of La Nina it would only take something minor to ignite all these problems again.
Not that I want to panic anyone, it probably won’t get any worse but it’s worth being prepared just in case
I respectfully disagree with the above comment. I find it hard to believe that anything other than a freak amount of rain could cause anything near this happening again.
In regards to the actual topic, I think it’s going to be slow going for QLD’s recovery. There’s just so much damage to vital infrastructure and buildings. Not to mention our resources in Nth QLD.
I also agree with maree_bradross, since these properties are fine, people who don’t want to rebuild may still want to stay in the area.Justin83 wrote:dnshull wrote:With all due respect Fredo and Darren. As much as this information might seem important here and now, there are bodies that are not recovered yet in the two towns you are speaking of.Your investments are no where near as important as the Lives ruined by this tradgedy. Be thankful it wasn't your house or your loved ones washed away in this disaster.
Respectfully,
Dave
haha, I just had to sign in to respond to this….are you kidding me Dave, how can you interpret these questions as an indication their not thankful their loves ones weren't washed away or it wasn't their house effected. I see what you're trying to do, stand up for those that were, but you're way off mate. we had to leave our place in east Brisbane this morning and you know what I even called my insurance company….oh wait, but this means I'm disrespecting those that have lost loved ones… perhaps change you're way of thinking otherwise you'll remain of grumpy sour man. I say all this 'respectfully' of course! Justin
Justin,
Grumpy sour man??? Get off mate. The fact that you signed in to have a crack at speaks volumes. All i was saying is let the water subside before we start getting concerned about our 3rd or 4th house that we aren't even living in or HAVEN'T EVEN PURCHASED!!! If this was a question about say an area in the Vic Bushfires days after it happened… where the death toll was unknown… Even the moderator would pull it down. I know what it's like to loose everything and start again.
I don't see this as being any different. And ringing your insurance company is not a fair comparison really?
All im saying is that it's a bit fresh… they are all valid questions im sure. It was just poor timing.
I hope you got out ok, and i hope you can see where im coming from.
Dave
Hi Darren, I was actually wondering the same thing so I looked at history of natural disasters and the effects this had on the property prices and interest rates. I learned in 1999 there was a massive hail storm in NSW which cost the government and insurance companies millions, and it was the most expensive natural disaster in history of Australia to date (not including the current floods).
I then researched historical data of median house prices and interest rates over the past 20 years. I discovered there was actually a property boom in 1999 and the interest rates were not adversely effected. I also compared other natural disasters (dates) and the historical data of interest rates and property prices.
I guess it comes down to supply and demand.
If builders, chippies etc are busy reconstructing existing properties, first home buyers and investors alike, will turn to purchasing existing properties, once supply slows prices will naturally increase.. as long as the interest rate does not skyrocket, and this doesn't seem to be likely.
Economists have many opinions about the property values and interest rates, generally it seems there will be a property boom 2012, interest rates are likely to increase in April and September 2011.. but we will have to wait n see I guess.
I hope this helps..Amy
I can't see interest rates rising. if this happened then they would be dumb, if it were to rise it would course further financial preassure which will hurt the economy even more.
S.walker00. There is always a possibility that it could happen again, really none of us know until it happens again, things normaly come in 3's don't they.
who would ever think I would get 5 flat tyres in the matter of about 2 weeks, if someone told me I was going to get heaps of flat tyres over a couple of weeks, I would have laughed.Westpac’s economics team is expecting interest rates to increase. All RBA cares about is inflation targeting and the floods will cause produce prices to increase significantly, creating inflationary pressures.
mattnz wrote:Westpac's economics team is expecting interest rates to increase. All RBA cares about is inflation targeting and the floods will cause produce prices to increase significantly, creating inflationary pressures.Not saying this is right or wrong, but an increase in the current situation will be as popular as a "nail in the foot" with many finding out they are not covered for flood or more the fact (Riverine flood damage).
BrianA week on and a massive clean up well underway. It is surprising how much has been done in so little time.
Courtesy of Your Property Investor Forum:
Property valuation in flood-ravaged areas to be permanently lowered: Fitch
17/01/2011While the full extent of the damage is yet to be quantified, Fitch Ratings said the flood currently affecting South East Queensland is expected to have a negative impact on mortgage borrowers.The ratings agency noted that the property damage may temporarily or permanently affect borrowers' ability to pay, and may result in lower than normal recovery rates for damaged properties, mortgage borrowers in the South East corner of Queensland may experience an affordability shock due to an increase in expenses and loss of income; and transactions might bear a certain degree of income shortfall and an increase in losses as lender's mortgage insurance does not cover flood risk."Borrowers who have been directly or indirectly affected by the flooding will likely experience some financial distress in terms of property damage, increased living expenses, and potential loss of income," said James Zanesi, Associate Director in Fitch's Structured Finance team. "Queensland's floods might also temporarily reduce available income in selected mortgage-backed transactions depending on their exposure to the affected areas."In the event of a borrower defaulting due to property damage, Zanesi said that recoveries might be revised downwards from Fitch's assumptions at the time of initial analysis.“Not all properties have specific flood insurance in place, and lender's mortgage insurance does not cover for flood damage. Moreover, the market value for properties located in the flooded areas might now be permanently adjusted downwards due to future flooding risk,” he said.An estimated 35,000 to 40,000 properties are believed to be affected by the flood. Fitch said flood-related losses may take at least six months before being realised.will flood ravage properties(over 70 suburbs affected in brisbane alone) be permanently down graded in value??
Interesting article. There is an article in the QT today about how vendors have already put properties on high ground up 10 to 30K.
There are soooooooo many pros and cons. There are less houses so does that mean there is more demand???????
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