I am interested to hear others opinions on how the Qld crisis will effect the property market in flood affected areas.
Will there be a glut of low priced soaked houses on the market?I’m also wondering the same thing. All I can think of is that builders will be kept really busy, leaving an absence of new properties being built…
In the early stages I don't feel you will get a lot of houses flooding the market. Many people will be just trying to rebuild thier lives with clean up, insurance, starting over, after which some people may look at getting out.
Of course people that do not have insurance you may find these places come on the market, not sure if that will drive prices down or form a glut. In my opinion I feel 18mth – 2 years is when you may find lots of newly repaired places come on the market this may cause a bit of a glut in some areas.
Also a lot will depend on insurance companies, if they ONLY will use thier own builders and tradies or allow people to get 3 quotes and use local builders and tradies to speed up the repairs. A lot will also ride on materials being available with everyone wanting stuff lead times for gear will be a big issue.
Brian
from what I understand a lot of insurance companies will not pay out for property damaged from rising rivers creeks etc and from rivers etc that have broken there banks
They will pay out if it rains a lot and this rain floods into there homes.
Thats what my insurance company told me anyway.
I am thinking a lot of people would have a fight with there insurance company over this.I would like to know what the renting people are planning on doing, move to a new town suburb or clean up there rented house and stay put.
Also does anyone know if Hervey Bay was flood affected?
keiko wrote:I would like to know what the renting people are planning on doing, move to a new town suburb or clean up there rented house and stay put.
I believe it is the responsibility of the landlord to repair, clean the property. Correct me if I am wrong, I believe Flood damage is classified as an emergency repair.
The best indication of what is going to happen to house prices is to find out (google etc…)
What happened to property prices after the 1974 Brisbane flood?
What happened to property prices after the Christchurch earthquake?
What happened to property prices after Hurricane Katrina? Etc…
Actually .. i'm more worried about the flow-on effects from all this loss in QLD. First .. the govt will be forced to pump money into fixing up whats broken, repairing infrastructure and getting things moving again. This is being held up as a once in 100 years flood, but .. what if its not? The mining industries have no transport to get in and out from mines .. invalidating contracts. Thousands of small businesses are dead and underwater.
I wouldnt be so worried about jumping in and grabbing bargains as to how this will affect Australias whole financial plan for the next 3 to 5 years.
nicolas_b wrote:keiko wrote:I would like to know what the renting people are planning on doing, move to a new town suburb or clean up there rented house and stay put.
I believe it is the responsibility of the landlord to repair, clean the property. Correct me if I am wrong, I believe Flood damage is classified as an emergency repair.
The best indication of what is going to happen to house prices is to find out (google etc…)
What happened to property prices after the 1974 Brisbane flood?
What happened to property prices after the Christchurch earthquake?
What happened to property prices after Hurricane Katrina? Etc…
oops I probabily wrote that last comment wrong regading tenants clean up,
yep landlords will obviously have to pay if there insurance company will not, but I am wondering what the actual tenant will do, collect there items and leave or maybe help do the clean up and stay.
From what I understand Christchurch colapsed to half its original value
I think houses that are not livable will be sold for land value
houses that are damaged and just need repair will be sold for a lower figure than what they could have sold for if they did not need repair,
Values will come back again, not like Christchurch
I would buy a flood damaged house but I wouldn't buy a earthquake damaged housei believe there will be a glut of houses that will come onto the market, i reckon 80% didn't or couldn't get flood insurance, if any previous claims have been made, eg emerald area.
any river front property, insurance companies are refusing insurance due to 1974 floods
keiko you are spot on with your comments about insurance, flood damage.
all those people affected by the floods will never ever get flood insurance again, and i believe this will drive
prices down in the short term, till people forget just like 1974 floodsFrom 'The Australian':
Prestige Queensland property market 'to be hit hardest'
As some one whose PPOR is surrounded by floodwater, I will not be selling. I believe that the houses that do sell will fall about 10% then rise again provided there are no more floods in the next 5 years. If the floods come again in the next 12 months you would see a huge drop in prices. I think the price drop will be inversely proportional to the frequency and severity of the floodwaters.
I would suspect that rents will stay the same though as we have good employment in the area.
Here the floodwaters rise slowly then drop slowly meaning that houses are floodbound for weeks not days. a slow rising flood is a much gentler than a flash flood where homes are ripped away.
Hi, with the question regarding whether Hervey Bay was affected, it really wasn't affected much. The only thing really was that it was cut off, as the roads from Maryborough/Gympie were flooded, but the bay itself only experienced minor flooding. Hope that helps.
Articles from the Australian:
No long-term price slide from Brisbane floods
For anyone interested, RenovateAndProfit.com combined forces with the Reno Kings and Property Women to put together a Quick Guide for anyone who is renovating after the floods. You can download it free at: http://www.renovateandprofit.com/FLOOD-RENOVATIONS
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