flood affected property - what discount to expect?

[scientist]

Generally what sort of discount would the market expect for property that's flood affected?

Is it fair to say most properties on the river front or within 1 street of the river flood affected? Do these properties generally get a value boost because of being river-front? or a value decline because of problems like mosquitos and crime?

 

[superAndrew]

The discount depends how low you can get the price and the fact that it's prone to flooding is a big advantage.

Personally I wouldn't go near it they want more than 80% market value of non flooded properties.

Is it fair to say most properties on the river front or within 1 street of the river flood affected? Do these properties generally get a value boost because of being river-front? or a value decline because of problems like mosquitos and crime?

Depends on the location. If it's close to a CBD then it will increase the value because developers will be interested in it.

Andrew

 

[scientist]

THanks for the reply

so... close to CBD riverfront is a good thing, whereas further away it's a reason to ask for a big discount...?

 

[superAndrew]

It also depends on the area and surrounding properties. What is the suburb?

 

[HeadsOnBeds]

http://www.realestate.com.au/property-house-qld-fig+tree+pocket-116909555

This property was in the news tonight showing how buyers have already forgotten the floods! And Fig tree pocket's a long way from the CBD, good luck with the negotiations. I'm assuming a Bris property you're looking at?

 

[GreenMedallion]

How much of the property is flood affected? What will be required to construct a dwelling where the finished floor level is minimum 0.5m above the 100 year flood level?

Once you know those questions then you can start to put more of a dollar value on it.

 

[Scott No Mates]

How often, how high and for how long does it flood? Work it out as an algorithm.

Whatever it is, the land value would be lower than a non-affected location. What do recent sales of COMPARABLE properties tell you that it is worth?

 

[scientist]

Thanks for the replies - not looking at anything in particular, just curious because from time to time I see riverfront properties

 

[marg4000]

The discount is entirely dependent on how reasonable the asking price is.

A 2% discount on a realistically priced property may be a better buy than a 20% discount on an overpriced one.

As always, do your research or you may miss out on a good buy because you are focused on the "discount".
Marg

 

[chilliblue]

Remember to check that you can insure the building

 

[Shahin_Afarin]

Insurance, finance and eventually resale will be fun (particularly if lenders make it harder to finance).