1 in 100 year flood zone - yay or nay

My partner and I found a house we are keen to make an offer on in Melbourne.
Looking through the section 32 and it is on the boundary of flood zone.
It's a new estate and there are plenty of houses inside the zone.
Im interested to know if others have or would purchase property in flood zone or is it something to steer clear of.

 

Having seen the devastation resulting from two major floods I woukd steer clear.

One in a hundred year flood zone does NOT mean one flood in 100 years.

It means that EACH year, there is 1 in 100 chances of a flood. So you may have no floods for 300 years, or 5 floods in 5 years.

Just make sure you understand the risks you are taking on.
Marg

 

I love insurance events and have made a lot of profit from having my houses in floods. Love insurance companies.

Several friends have been paid over 80k each for storm damage recently

Not taking into account the human cost - just leave the area when the flood begins

 

@Poppy thats an interesting way to look at it.
How exactly have you made profit from floods?

 

Nay. You can find better investments with less stress perhaps.

 

Depends on where the property is on the flood maps..This property may well be just outside the flood zones,but after going through several floods on one property we control over 22 years,once in 2011 the water went over the roof then i found out we were not covered for that type of flood..
So the first step would be is ring up the insurance and see what the cost is that may give you a idea if you can get insurance before you make any offer..imho..

 

I purchased bad houses in bad flood areas for 50k - 150k

After a weather event you get paid for damage - I choose cash instead of a free Reno. The cash is generous; restumping if a Queenslander is 50k

Then I sold laughing.

The rules may have changed, and I know premiums have gone way up for sure. At the time my insurance was under $400pa. I know some houses near me now in flood zoning are either completely refused insurance (!!) or charged $10k pa .... mmmm

 

Nope. The insurance premium was crippling

 

In or on the boundary of a flood zone are 2 different things

If its in the flood zone, the likelihood of a flood or insurance costs are not the only things to consider....

Equally as important is the next buyer(s) will be asking the same questions as you - limiting your ability to sell and probably driving the price lower

 

Nice work! Would you mind if I ask what year(s), and what area(s)?

 

If you can acquire the property at a suitable discount, why not?

If in a flood zone the lot will either have a covenant or restriction on title that gives you a minimum ffl for habitable areas, if such a restriction doesn't exist then it means you'll need to fork out 10k for a flood study which will prescribe you a minimum ffl. If the flood study prescribes a x ammojnt of height about ground level for your habitable areas, it may bump your total height over the height limit, possibly restricting your development to single storey.

If it's a new subdivision, might already have the levels on title. Check the title search

 

Not me. Resale is what I'd be looking at here.

People buying is what pushes prices up...who would buy in a flood zone? High or low income?

 

I remember a few years ago that a new bridge giving access to a town was built at the 1 in 100 year flood level.

The residents took this to mean that they would have 100 years of flood free access.

The bridge flooded one month after opening .

 

I do not worry about the map so much as what the risk is and if it has flooded in the past at all.

You can have a place on the top of a hill in no flood map and it could flood, i have seen it happen myself.

Lot of people buy on our coasts too and all could be wiped out by tsunami....

Look closely at what the risk is.

 

Depends on if it's prime land holdings located in a good area. Perhaps it is not worth taking on the risk if it's a nice home in one of those newly built estates/ land-house master-planned villages. However, my family did buy a quarter acre block in Sydney in a 1 in 100 flood zone and it has more than doubled in the past 3 years. Wouldn't be too bad if there is a flood since the place is getting knocked down either way.

 

Also depends on the property as well....

If it's a lowset brick veneer with plaster walls....nope.

But high-set on stilts might work....if Insurance costs permit.

Also worth mentioning that flooding is going to get worse, not better. I have seen flood zones increase and areas go from 1/1000 years to 1/100. This fact alone would lead me to steer clear in most cases.

 

Yes - if.......
You buy cheaply.
You know the depth of likely flooding at the property - historical records, flood maps?
That depth is not likely to enter the house - on stumps or raised? Or can you make changes to increase flood resistance by building low walls or earth mounds?
The flood water is very very slow - not a torrent. Any fast flowing water can do tremendous damage.
You can insure the property for flood at reasonable cost - the insurance company actuaries think its a good risk?

Cannot be too bad if the council allows development......

We brought an IP in Qld in a flood area and feel confident as all the above points have been checked.
Good luck

 

Ahah!
I actually did think it meant one flood in 100 years... that is how it is worded.

But 1 in 100 per year definitely makes more sense.

You would think they would word it as
1 in 100 PER Year

It would avoid alot of confusion....

 

Floods don't take any notice of the calendar.

Did you really think that floods occurred exactly 100 years apart???
Marg

 

Don't buy.

I think it has already been said that 1-100 can be a week or month apart.

Also just because council permit it does not mean they like it. What usually happens is developers take council to court and council loose.

Then when developments are allowed the next flood is likely to be more severe, think of it like putting objects in a bath - the water level rises right!

Also the flood maps are based on:

1. Rain intensity
2. Duration of rain
3. Area covered

Increase any of the above increases the flood area, depth and spread