Purchasing Flood Plain Property

[Candy]

I'd like to hear experiences about purchasing floodplain property.

There is a little 2 bedroom cottage on 1 acre come up for sale near me for $150k,and currently rents for $220

The big catch is that it is on a floodplain.

Council says the current property can be extended by up to 50% but any future/new development would require the land to be built up first.

I expect LMI would be out for a flood plain property?

I would be look at at it as an investment, wanting to keep it rented out, and to build a little equity.

So - your thoughts - floodplain property - worth considering or run away fast, it's not worth the hassle?

 

[AlmostBob]

the Brisbane floods werent a year ago?
Queanbeyan coles has flood level lines painted in, on the upper floor of the carpark, 32feet above broken-bank flood level from December
Doomsayers say climate change will only make it worse, so examine what part of the flood plain
If right on the river, I think I might be nervous,
If as much the floodplain as

Pakenham is Melbourne(just),

or​

Parramatta is Sydney(just)
​

not such an issue, and the other $s may be more important to the decision

 

[pennyk]

you may have trouble getting finance for it, and I dont know what the situtation is for insuring properties that are at high risk.
In the end, you need to decide if the risk is worth the reward.