Would you consider hosues that been flooded before?

[sumterrence]

Just curious??

I might be an optimistic person, but I suppose once there was flood happened the government will work hard on that area's water designed and make sure it doesn't happen again otherwise it will be very expensive for the government.

I just think they will do whatever to prevent flood happening again as I don't think they can afford too many floods happening?? Even insurance companies will demand them to fix it otherwise they may refuse to insure houses in that area which will affect the whole economy in that area?

 

[robboat]

I am an optimist but I have not found the right deal with any flood land except where you can backfill and raise the levels....

Also, can depend on wether it is a one in 100 year flood or a more regular flood risk.
Also, the amount of land that would be flood affected.

Sometimes you can look at the land and think of a new house design that can withstand the flood risk....e.g. raising the house on piers.....but it takes a lot of $$$$ and the deals are usually too skinny.

Also, lenders and insurance companies are shy on flood land....all sell at a (high) premium.

There seems to be more shallow flood areas now that the city is all pavement and concrete.....engineers are not too sure exactly where the water will go to get to the low point when it builds up.

And I would not rely on the government to do much......
So I would stay away from it.

Good luck.

 

[bashworth]

I have known cases where a house on stumps has been raised after being flooded, only to be flooded and raised again.

With global warming severity of storms is only likely to get worse. Also more development either infill or on the edges of cities means more hard surface and the risk greater runoff volumes. (even with detention storages)

 

[Anh]

Having owned one before and the stress we went through during the flood ( although the water did not rise to the house floor level) it is not worth it. Even if it is cheap, I would stay clear. Insurance with flood cover is almost triple premium you would pay for the normal block.

Ta

Anne

 

[Jake Milne]

Generally speaking no. However every property should be judged on it's own merits. You have to be sure that you have a 20% deposit as LMI might be refused.

Additionally you'll need to factor in potential insurance costs and repair costs when doing your cost analysis to make sure you're prepared for the risks associated with flooding.

Finally if one property has been affected by flooding then it's likely that the surrounding properties have too... This can impact long term growth as potential buyers for the entire area may be more wary.

 

[sumterrence]

All very good points, thanks guys

 

[Shahin_Afarin]

couple of issues/things come to mind:

1. Insurance premiums
2. Finance
3. Valuation