Basin Pocket (Ipswitch) - Under market value opportunity, in a flood zone

I Placed a low-ball offer on a property in Basin Pocket last week and the agent has come back saying "a little higher and the offer might get accepted". Seems about 10-15% under market value when compared to recent comparable sales if I get it for close to what I've offered. It's in a flood zone. The house was flood effected in 2011 and 1974. Yield is about 7.5% at the price I'm looking at. Tenants in place. Land value on this one according to price finder is only about 35% of the total purchase price (concerning).

Thoughts on buying in a flood zone?

Thoughts on capital growth potential for flood zoned Ipswitch properties?

I also contacted Ipswitch council and they have informed me that any additions to the house such as additional rooms or bathrooms etc will probably be declined. New houses in this flood zone must be built "on stilts". My thoughts are that this will be detrimental to future CG.

I will probably just let this one go as theres a multitude of restrictions and risks involved.

Has anyone had experience buying property in a flood zone? I know it's not ideal, but there must be a point where if the price and yield is right, maybe it's worth it?

 

Personally I wouldn't buy. Affect on future price and development potential as you have identified.
Plenty of other choices out there.

 

Yeah I probably wouldn't buy either... The house will most likely always be under-priced and buyers will use the 'house is flood prone' as leverage.

Also insurance would probably be pretty expensive. Then adding tenants in there and it did flood is going to be a nightmare. Just my inexperienced opinion.