Markets in a ‘sound’ state despite shift: PIPA
The winds of change are sweeping through the country’s real estate market, but for Property Investment Professionals o...
Investors need to be vigilant about checking flood zoning and insurance, Propell National Valuers has warned following the recent flooding disaster in Queensland and New South Wales.
CEO of Propell National Valuers, Bart Mead, said there are many homes and buildings throughout Australia that are located in areas identified as flood zones but which rarely flood.
“Buildings in designated flood zones will have been priced accordingly and therefore are unlikely to change in overall value if they are actually flooded,” Mr Mead said.
“Whilst the floods are fresh in people’s minds, the affected buildings will of course be harder to sell and their marketing period will need to be extended.
“This is why insurance is so important. It can be used to remediate the damage caused by the flood.”
Mr Mead said lower sale prices received for flooded properties were mostly a result of flood damage that had not been fixed or a sale date too close to the flood period.
“In these situations buyers are looking for discounted prices,” he said.
In Brisbane, flood zoning information and individual property reports can be downloaded from the Brisbane City Council website, as well as the new Flood Flag Map which can be downloaded on the council’s mobile platform and shows flooding information on a suburb scale.
In New South Wales, flood information can be found on the state government's floods website.
Additionally, investors should discuss their flood zone status with their insurance company, even if the property isn’t in a high-risk flood area.