Financing flood prone areas
- Thread starter D_One
- Start date
The right borrower, the right property and the right insurer you can still get through at 90 % lvr even with a 5/5 Enviro risk.
ta
rolf
ta
rolf
If you need an out is more of an issue.
If you have a block that floods and you try and sell it with development potential or as land for building it is much harder.
If you develop them and the issues have been addressed that is easiest.
If you get a DA that shows how the flooding issues have been addressed that helps but not as good as building it.
If you have a block that floods and you try and sell it with development potential or as land for building it is much harder.
If you develop them and the issues have been addressed that is easiest.
If you get a DA that shows how the flooding issues have been addressed that helps but not as good as building it.
Can you explain what that actually is? Is it just a banks internal environmental complexity/risk rating of a project/site? Cheers
Most FULL valuations have a bunch of risk ratings for 1 to 5 for this like, environmental factors ( road noise, flood zone, air, EMR risk etc ), reduced value over time, local economy etc
1 is great 5 is ohoh
ta
rolf
Also the ratio is very important.
The flood ratio is on the sale contract ( section 149) and on some council site.
1/20 - Meaning it flood once every 20 years
1/50 - once every 50- years etc...
Anything more than 1/70 - Normal LVr and it's a standard purchase with standard risk
1/50 - Major lenders will look at it as standard risk if it's in a good rea
less than 1/50 ( 1/20 etc..) - Def less than 80% and you better have a strong file.
Regards
Michael
The flood ratio is on the sale contract ( section 149) and on some council site.
1/20 - Meaning it flood once every 20 years
1/50 - once every 50- years etc...
Anything more than 1/70 - Normal LVr and it's a standard purchase with standard risk
1/50 - Major lenders will look at it as standard risk if it's in a good rea
less than 1/50 ( 1/20 etc..) - Def less than 80% and you better have a strong file.
Regards
Michael
Not necessarily. Best to get an upfront valuation done if you are super-keen on the place and use a finance clause to get out of it.
^ flooding is very common in Australia, it just depends on the rate of occurrence...hence why you really need to know the flood ratio for the property in question.
