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QLD Will you buy a flood area?

Discussion in 'Where to Buy' started by fumid, 20th Feb, 2016.

  1. fumid

    fumid Well-Known Member

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    Saw a house in Moreton Bay near station.

    close to creek,
    Parts of this property are within the extent of the: 1% AEP Flood event

    price lower than its neighbours which has same problem as well
    rental yield pretty good

    Would you consider buying it?
    Insurance fee can be ridicoulous high?
    checked online building insurance, $600 a year, not too bad.
     
  2. House

    House Well-Known Member Premium Member

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  3. fumid

    fumid Well-Known Member

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    This one is only 1% not that bad, but any way better leave it
     
  4. Yson

    Yson Well-Known Member

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    How much cheaper ??
     
  5. bob shovel

    bob shovel Well-Known Member

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    Some insurers won't touch within 1/100 year flood others only go to 1/50. Rang youi and they wouldn't touch land within 1/100 but floor level is above 1/100. They might get back to me but I doubt it
     
  6. Scott No Mates

    Scott No Mates Well-Known Member

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    Note that gross yields will take a hammering if your insurer doubles/triples the cost of cover compared to the nearby property with a poorer yield but no flood premium.
     
  7. fumid

    fumid Well-Known Member

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    think better not touch it since has other choice
     
  8. JDP1

    JDP1 Well-Known Member

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    yeah, and also consider that at some point in the future you would want to sell it...and being flood prone will directly reduce your potential market.
    Brisbane has plenty of choice. Look a bit deeper and there will be options at similar price points that are less risky.
     
  9. Luke T

    Luke T Well-Known Member

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    Not worth it in the flood zone as it will always be held back -but just outside the zone can be ok as still a lower price than other areas around it but is flood free