Long term investing and climate change

The simple fact is climate change will make some areas more appealing , like Hobart , where some areas that are at the hotter end of the spectrum will become less attractive, and the effects of what is currently happening in Sydney possibly more common in a climate with less rainfall and lots of forests.
It was only 15 years ago that NSW had the once in a thousand year drought.
Yet we keep on adding to the population.

 

Gippsland isn't all that hot most of the year. Time to look there?

 

Wouldn't be surprised if we start seeing laws being introduced that require vegetation and bush to be cleared within a certain distance of properties in a lot of regional/rural areas. This will make some properties and areas nestled among the leaves less aesthetically pleasing, and will be met with tremendous opposition, but with longer fire seasons and drier vegetation year round (thanks to declining rainfall in the cooler months) it seems inevitable.

 

This is already happening in some areas of suburban and outer-suburban locations.

 

Its a good way to actually raise the temperatures, so it becomes self defeating.

 

Aesthetically pleasing - this is a subjective view.
Removing trees from the immediate vicinity of a house does not necessarily make it less appealing visibly. Plus, I think you will find it is not a mandatory thing; it allows people to remove the trees, but doesnt mean they will; its their choice.
I have built 2 houses so far, and about to build no.3, and in all cases we were not allowed to remove trees that were not directly being affected by the footprint of the house.

 

I think if people are so concerned about these fluctuations in weather, and its going to influence their decision about which properties to rent or buy; then make sure you buy or build 6 star energy rated (or higher) investment properties to cope with the variations - to make sure your please a larger pool of potential renters of future purchasers.

 

The sad fact is that the future catastrophic effects of climate change won´t be borne by most current investors, and so most people don´t care too much. Future generations however will witness entire communities displaced and tens of thousands of properties plummeting in value to zero, but that´s their problem.

 

I would be more worried by another Stock market crash, or sudden dramatic interest rate rises

 

Yes that's exactly what I mean, property prices are more likely to be affected in the short term by relatively minor events now, than catastrophic events in the future. It´s human nature unfortunately.

 

The climate changes (and is supposed to change) at literally a glacial speed. I don't think there is anything to worry about from an investment perspective. The speed at which any climate change will occur is highly manageable.

 

Take greater Sydney metro area, there has to be an even greater comparative demand for property located near the coast. New estates in NW/SW/W where you have McMansions on 300sqm, no tree cover, concrete + glass + 24hr aircon + warmer temperatures overall makes these places less desirable over time imho

 

Bump

Climate change set to make getting insurance on Queensland coastal properties very tricky Dreaming of a Queensland sea change: Beautiful one day, uninsurable the next?

Thoughts anyone?

Also discussion on abc about Canungra bushfire that burnt down rainforest and lodge. Now weeds have arrived $40m of weeds!!