QLD Flood Affected Area Brisbane - Would you?

Discussion in 'Where to Buy' started by tazy400, 6th Feb, 2016.

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Should I consider purchasing an IP previously flood affected?

  1. Don't do it!

    38 vote(s)
    77.6%
  2. Yes could be a good investment

    11 vote(s)
    22.4%
  1. Tim & Chrissy

    Tim & Chrissy Well-Known Member

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    I think you need to do a bit more research on what flood affected will actually mean.

    For example, 1 in 100 year flood does not mean the place will only flood once a century, it means that every year the risk of a flood event is 1%.

    The contours of the block affect your floor heights as well as how the councils are handling flood planning (i.e. are they revising minimum floor heights due to recent events)

    We found a property in Shanes Park NSW on 5 acres. It was on higher ground than the fibro cottage across the road, was also further away from the creek and almost every other farmlet had a highset house on it. We assumed this meant we should be able to build but checked with council first.

    We went to council, they had gradually revised the floor levels up since the other homes were built. Our floor height had to be a certain number of metres above the flood level, the maximum allowable floor height level was 3 metres. Based on the contours of the block our floor level would have to be 3.5 metres off the highest point of the block to get above the flood level i.e. you could never build on this block of land. Cut and fill, retaining etc. was also not allowed as it would cause greater flooding to the neighbours.
     
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  2. Heinz57

    Heinz57 Well-Known Member

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    Some of the posher suburbs in Brisbane flood. Places like Chelmer, Yeronga, St Lucia, Fig Tree Pocket. They seem to bounce back faster in price I think.

    I am working in Rocklea at the moment and it is not that nice a place even when it's not flooded.
     
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  3. Tim & Chrissy

    Tim & Chrissy Well-Known Member

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    Take the flood issue out of the equation for a moment.

    Is the yield on Rocklea any better than more expensive suburbs?

    Will the reno on existing IP's significantly increase their yield after costs are factored in?

    If the answers are no and no we would be buying in the better suburbs.
     
    tazy400 likes this.
  4. HUGH72

    HUGH72 Well-Known Member

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    That's a possibility for the op, the property could be raised further possibly. I think the easy money was made on these types of properties post 2011 when they were being practically given away.
    They are now priced considerably cheaper than surrounding suburbs for a reason, whether it represents good value I don't know.
     
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  5. WattleIdo

    WattleIdo midas touch

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    Agree. It was only supposed to flood once in a hundred years that means the chances of another one in the next 50 years is reduced by the x-factor. No.
    Also, raising the foundations would raise the potential for the house to be swept off or knocked over, wouldn't it?
    I also agree that the area will have magnificent capital gains and even become desirable within the next 10 years, with the young ones not having seen the horror. I love a bargain as much as anyone. But no. I wouldn't.
    However, if I was as interested as you, I would try to find out what the council/govt has and hasn't done since the last floods. Is it something which can be improved on? Or is it just a suburb that will always suffer from flooding?
    Even just a little flooding is very unpleasant and the memory of the smell and any trace of it stays with you forever.
     
    Last edited: 6th Feb, 2016
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  6. larrylarry

    larrylarry Well-Known Member

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    What about partial flood affected, for example, flood only affected the backyard but not the main property? I'm thinking if one is to develop townhouse on the land, then it's going to be expensive.
     
  7. Tim & Chrissy

    Tim & Chrissy Well-Known Member

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    Partially flood affected is fine until council revise the flood levels up, all of a sudden your entire block can be in the flood zone and there goes your development. It's a massive risk.
     
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  8. larrylarry

    larrylarry Well-Known Member

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    Too true.
     
  9. Tim & Chrissy

    Tim & Chrissy Well-Known Member

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    We only know because we almost got burned on two places a few years ago, one in Penrith CC and the other in Blacktown CC. Blacktown were revising the flood levels up. Penrith were revising the flood levels down. 5 acres in Penrith wasn't in a flood zone but had Overland flood flows, same issue, you could never build on the block as a result. Around the same time a block with development potential in Werrington was being moved out of the flood zone.

    It's fine to buy in a flood zone but you need to know exactly what you are buying, the risk not only of flooding but of council moving the goal posts and paying a price that takes those issues into consideration.
     
    larrylarry likes this.
  10. Bran

    Bran Well-Known Member

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    1 in 100 year flood doesn't mean it will flood every 100 years, but that every year there is a 1 in a hundred chance.
    For those of use who wielded a shovel after the last one, I won't touch them.
     
  11. Shazi

    Shazi Active Member

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    There are many flood prone areas around the city where I would not hesitate to invest however Rocklea is not where I will put my money .
     
  12. tazy400

    tazy400 Member

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    Thank you everyone for your feedback, you make some extremely compelling points and I have decided to discount the property. Especially being based interstate it's not worth the risk and impeding hassle... the fear every January in itself is enough to put me off.

    Thanks again :)
     
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  13. mcarthur

    mcarthur Well-Known Member

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    I don't buy in order to sell to an investor. I'm quite happy to - eventually, assuming I'm alive when selling - sell to an OO. I doubt my market is adversely affected to too much by a) those on PC, b) investors in general. I may lose a few percent of possible buyers, but if everything else stacks up then I'm fine. I think @keithj has the idea that OO's will forget soon, and even faster if it means they can get 5km closer to the CBD/work for the same price.

    For the record and in case people think I have no experience, I have been in these situations - I've been in the 1974 Brisbane floods, 1974 Darwin cyclone, and 2003 Canberra fires and more. My sibling can add the Kobe earthquake, but they obviously attract danger and I won't go near them :p.
     
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  14. Casteller

    Casteller Well-Known Member

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    Grew up in a flood zone in Australia, every 2-4 years we'd get a big one and have to go and clean out someones place. Houses are much cheaper in those areas, we were a bit up the hill so ok, and had a large canoe to cruise around and transport people when they needed (it was fun as a kid).

    Surprised noone has mentioned the rising sea levels... the once in 40 year events will become much more common as flood runoff slows due to Moreton bay sea level being higher. Eventually a lot of low lying areas will become uninhabitable, so by buying there you are effectively buying a lease of less than 100 years. The regular/permanent flooding doesn't actually have to happen, just the acceptance by people that it is going to, for these areas to become worthless.
     
  15. Biz

    Biz Well-Known Member

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    Is that what they call him in your parts? Frankly it's about time he retired. GOAT my bum! Jordan > Kobe any day...
     
  16. Inov8ive

    Inov8ive Well-Known Member

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    I came close to buying in Rocklea a couple of years ago. It is tempting with those prices and the proximity but I am definitely happy I didnt buy there. It will never be premium area as few people are ever going to build a nice house in a flood zone
     
  17. dabbler

    dabbler Well-Known Member

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    Here is my thinking.

    If in 74 and 10/11 it did not get into the living space, it may be ok, if it was just underneath the living area I think I would not buy, if water was a few inches in the garage area of a high set, then any flood would have to be 2m more than the largest so far.

    People do panic over the flood maps though, I know for a fact one street that shows as high danger in the maps has never had water on any of the properties, let alone touch any house, but it spooks people, but thousands and thousands live in coastal areas that could be wiped out in a minute by a tsunami, yet that is not an issue.
     
  18. tavinium

    tavinium Well-Known Member

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    Capital growth long term may be impacted, because of the market sentiment. Running costs could be higher due to maintenance, Insurnace premiums. However, could get well price investment for the general location, good yield, sentiment could change over the long term. Compare the prospective investment to other prospective investments and see what's best for your strategy.
     
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  19. Truly Exotic

    Truly Exotic Well-Known Member

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    here is my input

    all depeds on how much your entry point is

    get in at the same price as a non flooded property then your probably going to struggle,

    get it 200k below a non flooded property, then chances are you wont lose

    as people have said the best time to get in as soon as the flood passes, as peoples memorys get hazy pretty quickly

    as others have said, you need to caclulate the cost of flood insurance, if the figures stack up then go for it

    and yes, your market for resale is limited if you need to firesale, if you dont mind waiting then I dont see it as a problem.

    good yields, hopefully a similra PERCENTAGE captial growth as a non flooded property

    there is no way a 200k vs $300k flood vs non flood, will be worth say $250k vs $600k in 10 years

    and (my personal opinion) for floods, its like trying to predicting red or black on roulette, I may be wrong as im not a metereologist but a 1 in 25 yr just because 1 occured in 2011, the next one wont be in roughly 23 years time

    however, I didnt buy in these areas because the insurance put me off and it had nodevelopment potential, I was looking at ipswich, and the median was about $250-$300k, for a 600sqm, and just net suburb, there was a block on 10,000sqm with a grubby house that couldnt sell for $150k
     
  20. Blueskies

    Blueskies Well-Known Member

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    I know when I am looking at property one of the first things I check in brisbane is the interactive flood mapping. If the property is in a flood zone i wouldn't touch it, and I'm sure many others do the same check so will definitely reduce the buyer pool come time to sell.
     

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