Flood-affected Brisbane properties hit the market, six months on
by Michelle Hele From: The Courier-Mail July 16, 2011 12:00AM
Brisbane stronger after floods, Giuliani
Brisbane could emerge stronger from the floods as New York did after September 11, Rudy Giuliani says.
OPPORTUNITY KNOCKS: Prospective buyer James Freudigmann inspects a flood-hit property at Indooroopilly. Pic: Isaac Lawrence Source: The Courier-Mail
THE internal walls are missing, wires hang from the ceiling and the floors are bare.
Yet potential buyers can still see the former glory of this flood-affected Indooroopilly home, which has scored more than 780 hits on its internet advertisement within a week of going on the market.
It is one of a number of flood-affected homes now coming on to the market six months after the January floods.
Cheryl Edmonston, of Doug Disher Real Estate, is marketing 258 Indooroopilly Rd.
She said the owners wanted to move on and put the floods behind them. Nine people had inspected the property this week, phone inquiries were received and more people were expected to look at the five-bedroom home today, which goes to auction on August 13.
Ms Edmonston said many potential buyers saw it as a chance to get into a market they may not previously have been able to afford.
James Freudigmann is one of those potential buyers undeterred by flood damage. He lives at Kenmore and would like to live at Indooroopilly, closer to the city.
"I have looked at a few properties (flood-affected) around the place but you have to be pretty quick," he said.
Mr Freudigmann said if he bought a flood-affected property they would do it up, live in it for five or seven years and then probably sell.
Geoff Smith of Ray White Indooroopilly said his office had now finalised several sales of flood-affected properties.
He said the circumstances of those selling were all different. Some renovated before selling, others cleaned the houses, stripped them down to dry out and were leaving renovations to new owners. Others were selling because they had to.
Mr Smith said prices being achieved, depending on the damage and repair work needed, appeared to be 10 to 30 per cent down on what they would have sold for before the floods.
He has an unconditional contract on a home at Witton Rd, Indooroopilly for $565,000.
He is marketing another in Dobell St, which was repaired and renovated after the floods.
Mr Smith said buyers appeared to be willing to take the risk there would not be a similar flood for another 10 or 20 years.
Tony Poulsen of Ray White Graceville has also marketed flood-affected properties.
Mr Poulsen's agency sold a Corinda home for $350,000, which had some structural problems and another on Leybourne St, Chelmer, which would previously have sold in the high $500,000s and went for $410,000. His agency has also sold a home at Tennyson which had been repaired after the floods. It sold for $380,000 - about 30 per cent down on what it would have achieved.
Mr Poulsen said builders and investors seemed most interested in the flood-affected properties on the market.
Flood prone land is some of the most prestigious and expensive in Brisbane and there is nothing wrong with it, all it needs are smarter building practices, like they have had in Rockhampton for years.
Up there, all houses must have all living areas, HWS, electricals st above Q100 levels, No building in downstairs allowed, so water can still freely flow so a standard QLDer style with battens works well.
They come in slowly, so plenty of time for shifting stuff to the above flood level A simple hose out downstairs when the water recedes and its business as usual
Ignore posts by The Whole Truth · View Post · End Ignoring The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
Flood prone land is some of the most prestigious and expensive in Brisbane and there is nothing wrong with it, all it needs are smarter building practices, like they have had in Rockhampton for years.
Up there, all houses must have all living areas, HWS, electricals st above Q100 levels, No building in downstairs allowed, so water can still freely flow so a standard QLDer style with battens works well.
They come in slowly, so plenty of time for shifting stuff to the above flood level A simple hose out downstairs when the water recedes and its business as usual
I hope that's clumping bamboo, or the neighbours are going to be really pissed off.
I doubt the prestigious flood prone areas would go for this, although the concept is good. it looks like a modern day qld-er. surprise surprise.
it would be good for cheaper flood prone areas like rocklea. although i doubt those in Rocklea could afford it. it appears to have a small footprint so would be great for small blocks in general, which is the way we are heading. higher up and tons of ventilation make it ideal for qld.
Flood prone land is some of the most prestigious and expensive in Brisbane and there is nothing wrong with it, all it needs are smarter building practices, like they have had in Rockhampton for years.
Up there, all houses must have all living areas, HWS, electricals st above Q100 levels, No building in downstairs allowed, so water can still freely flow so a standard QLDer style with battens works well.
The trick is knowing whether "Q100" really means Q100. Or is really more like Q24, as in the Brisbane case, with 5 floods of 1974 magnitude in 120 years.
The real scandal of the 2011 flood was not how much water should have been released from the dam at any given hour. It was the steady and deliberate weakening of the Q100 standards during the Soorley and Quinn mayoralties, in the face of pressure from developers.
But I'm sure Rockie has never generated any politicians who cut corners, so there's nothing to worry about...
Ah yes That WAS the actual house that was on the news Much nicer IMHO Thanks
Ignore posts by The Whole Truth · View Post · End Ignoring The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
Ah yes That WAS the actual house that was on the news Much nicer IMHO Thanks
we would need to produce heaps of these house to make them affordable. why not? they're not only flood proof but qld friendly. a modular system could work.
the water tank on ground level is a bit dodgy, turns into a massive projectile in a flood. bury it i say.
Premiums to soar if flood cover becomes mandatory: insurers
By Larry Schlesinger
Friday, 15 July 2011
Investing in property, especially those near coastal areas or waterways, could become significantly more expensive if the government forges on with a proposal that mandatory flood cover be included in insurance policies.
The Insurance Council of Australia, which represents the nation’s biggest insurance companies, has rejected the proposal by the National Disaster Insurance Review estimating it will cost $5,000 to $7,000 in additional premiums to cover each of these homes against the risk of flooding.
It is on top of home and contents insurance premiums increasing between 20% and 40% in each state, mainly as a result of reinsurers increasing the cost of the cover they proved to insurers due to the recent spate of natural disasters.
Global reinsurer Munich Re estimates the Queensland and Victoria floods in December 2010/January 2011 resulted in insurance losses of $2.4 billion, while losses as a result of the Japanese tsunami are estimated at about $28 billion.
Century21 chairman Charles Tarbey sees a flow on effect if flood cover becomes mandatory.
"The issue is that investors have to cover costs, and will likely pass these additional insurance costs on.
"If buyers find these premiums to be prohibitive they may not purchase properties in these areas, which will have an impact on the availability of rental stock, and we already have a shortage in many areas as it is,” he tells Property Observer.
For those who already own investment properties in these areas, Tarbey says rental rates will likely increase, “however the cost of owning the property could cause the investment to underperform.”
The proposal comes six months after the Queensland floods, with the state’s reconstruction authority reporting that hundreds of people might not be back in their homes by the start of the 2011 wet season.
Head of the reconstruction authority, Major-General Mick Slater, says 860 of the 2,500 damaged homes in North Queensland have been repaired.
In its response to the proposal from the National Disaster Insurance Review, the ICA has repeated its calls for a focus on risk mitigation strategies.
“Risk and premiums are inextricably linked and essentially we are arguing that the risk element needs to be attacked,” says ICA chief executive Rob Whelan.
“Let’s reduce the risk by having appropriate mitigation and then the cost of insurance will decline,” he says.
In illustrating its position, the ICA compares the role of flood insurance to that of comprehensive vehicle and third-party car insurance:
“The community and government do not expect that cheaper or subsidised car insurance for at-risk drivers will stop accidents on the road occurring. Indeed, reducing the price signal for hazardous driving activity in this instance may have the opposite outcome by removing one of the hip-pocket consequences of risky driving behaviour. Affordable car insurance cannot substitute for risk mitigation activities that lower the occurrence of accidents.”
The peak insurance body estimates that 7% of residential property in Australia is exposed to predictable and repetitive flooding, causing an average of $400 million to $450 million in damages per year.
It claims the private insurance market is working when it comes to dealing with flood risk, with 85% to 92% of submitted claims accepted by insurers.
“Flood insurance has been widely available for every property in Australia since 2006.
“Market provision of cover is accelerating, with 54% of policies selected by consumers currently providing cover, [and] this is expected to exceed 84% in the next 18 months.
“There is no issue with availability.”
The ICA has also rejected proposals for a government flood pool, which it says will raise the cost of living.
“A new pool will require further government bureaucracy and complexity and will increase the cost of living for ordinary Australians.
“The majority of insurers do not support the creation of a system that will pool flood premiums in government hands, preferring instead a model targeting those in need of premium support, with direct subsidies,” it argues.
However, the ICA say there is room for improvement “through market reforms and government action on risk mitigation and community support”.
“This is the true community problem that requires reform by government to achieve lasting solutions, without which any government or private market flood insurance solution is not sustainable over the long term,” the ICA says.
The proposals set out by the NDIR, chaired by former APRA board member John Trownbridge, do include proposals to mitigate flood risk.
These include a commitment to ensuring a measureable reduction in the number of flood-exposed residential properties in each LGA is achieved each year for the next 20 years.
Other government proposals include:
Providing public access to all publicly funded flood mapping conducted in Australia, followed by a program to harmonise Australian flood mapping practices to be aligned with world’s best practice. Through COAG, implementing legislation ensuring flood risk disclosure, to provide all property owners and tenants with flood risk information during title transfer or development application, when a lease is entered into for occupation or use of a property and annually to the resident and to the ratepayer for the property. Implementing a national policy for land use planning whereby no residential property is constructed on at-risk land, without enforcement of development controls that reduce the risk to less than a one-in-100-year type flood event.
BUSINESS and homeowners are bracing for double-digit rises in insurance premiums as major underwriters seek to recoup losses from a string of catastrophes over the past 18 months.
At the same time, players such as Suncorp, Insurance Australia Group and QBE Insurance are seeking to pass on price hikes from their own reinsurers, with the Pacific region now regarded as a riskier place to do business.
The global reinsurance industry has been pushing through dramatic rises in premiums after being hit with as much as $US100 billion ($92 billion) in losses ranging from floods in Australia to deadly earthquakes in Japan, New Zealand and Chile.
Reinsurance is bought from global insurers to protect against large natural catastrophe losses. While it is often the biggest single expense for general insurers, it is crucial for capping the cost of payouts.
But the latest financial year renewals period for most businesses has resulted in premium increases ranging from 7.5 per cent to 20 per cent for most classes of property and public liability insurance, insurance broker Marsh said in a briefing to clients.
Brisbane's southside has recorded a larger slump in house prices than any other region in all state capital cities, new analysis shows.
Prices in the city's inner southeast tumbled 8.1 per cent in the three months to June, according to figures released by RP Data yesterday.
The median house price across the region, which takes in suburbs from Tennyson and Moorooka, to Murarrie and Cannon Hill and then Holland Park and Carindale, fell from $587,500 in March to $561,250 by the end of June.
By comparison, property prices in the inner northwest dipped just 0.7 per cent over the quarter and 3.8 per cent over the financial year.
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