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Brisbane and Queensland Flood: How the floods may affect Property Values and Insurance Premiums; This may interest flooded home owners
Topic Started: 31 Mar 2011, 06:15 PM (6,421 Views)
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http://www.theage.com.au/business/property/property-rebound-months-away-forecaster-20110913-1k73a.html

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Property rebound months away: forecaster

Marissa Calligeros
September 13, 2011

January may mark a turnaround in Brisbane's flagging property market, but there is no sign of conditions improving before then, according to leading economic forecaster BIS Shrapnel.

The forecast reflects a sluggish start to the spring property season, as households are wary of taking on more debt and potential home buyers hold out for interest rate cuts.

BIS Shrapnel building and construction forecasting manager Angie Zigomanis will today demonstrate for an annual industry conference in Brisbane that January could mark a turning point in the market.

"This financial year will be pretty tough. We're expecting moderate growth – percentages in the low single digits - in terms of new dwelling construction and in terms of prices as well," he said ahead of the conference this morning.

"But 2012 will be more of a consolidation year."

Read more: http://www.theage.com.au/business/property/property-rebound-months-away-forecaster-20110913-1k73a.html
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matthew_50
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ugg.. 7% IS NOT a balanced rise in a balanced market... that would be around inflation, or at most wage growth...

7% would be a boom...

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earthsta
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matthew_50
15 Sep 2011, 11:13 AM
ugg.. 7% IS NOT a balanced rise in a balanced market... that would be around inflation, or at most wage growth...

7% would be a boom...

Zigonmanis and BIS are paid shills for the real estate industry.

If you're reading an article and BIS or Zigonmanis are mentioned, stop reading and disregard all that preceded it :wink:
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http://www.apimagazine.com.au/api-online/news/2011/11/standard-flood-definition-soon-to-kick-in

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Standard flood definition soon to kick in

Posted on Tuesday, November 15 2011 at 10:57 AM

To the relief of many property owners, the Gillard Government yesterday officially announced that a standard ‘flood’ definition would soon apply across all home and contents insurance policies.

Following the release of the 47 key recommendations outlined in the final Natural Disaster Insurance Review report, the government will release draft regulations on the standard definition by the end of this year.

The standard ‘flood’ definition will be: The covering of normally dry land by water that has escaped or been released from the normal confines of any lake, river, creek or other natural watercourse, whether or not altered or modified, or from any reservoir, canal or dam.

The government is also considering whether to make flood cover mandatory as part of home and building insurance policies, while giving consumers the option to opt out of that cover.

Insurers will also be required to provide consumers with a Key Facts Sheet clearly highlighting on a single page all key information about the policy features.

Lenders will also be required to remind borrowers of their obligations to maintain insurance and of the risks if under insuring.

Another government commitment announced is for a flood risk information portal to be established providing a single access point to existing flood mapping data.

This portal will help with emergency management, land use planning, environmental management, and detailing the setting of insurance premiums, said Attorney General Robert McClelland.

Other recommendations currently under government consideration include a provision of affordable flood insurance for those at high risk and the creation of a reinsurance pool of funds to enable insurers to provide discounted flood coverage.
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Frankly, property isn't dear because no-one promised a dam

Bridie Jabour
January 11, 2012 - 4:30PM

The floods receded and house prices went down with them. And with no promise of a major infrastructure project to ease future flooding - such as the Wivenhoe Dam after the 1974 floods - confidence in Brisbane property values is taking a while to bounce back.

A year on, some of the flood-affected suburbs are still recording home value falls in the double digits, according to the real estate industry. The latest Real Estate Institute of Queensland figures show Rocklea was the suburb that sustained the biggest hit, with the median house price toppling 23.9 per cent from $368,000 to $280,000 in the 12 months since the 2011 floods.

REIQ chairwoman Pamela Bennett was a real estate agent in southeast Queensland in 1974. It was too difficult to tell whether 2012 would be the year when people's confidence in the property market returned, she said.

"The biggest drop [in house prices] would have been in the initial sales," she said.

"What happens, and what happened in 1974 is people's confidence tends to return but it's hard to say where we are going to be in a year.

Read more: http://www.brisbanetimes.com.au/queensland/queensland-property/frankly-property-isnt-dear-because-noone-promised-a-dam-20120111-1pv1m.html#ixzz1j93kYUU6
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Mixed feelings on the Grantham land swap

Posted on Thursday, January 12 2012 at 3:46 PM

This week signalled one year since Grantham, in Queensland, was ravaged by flash flooding. In this time a new town has resurfaced just up over the hill from the old town, with sweeping vistas and flood-free land. Some locals say it’s an exciting fresh start while others say the land swap deal by the government could have been fairer.

Miles uphill from the increasingly abandoned old Grantham town to where the new land lots have been distributed in a Lockyer Valley Regional Council ballot system – an Australian-first land-swap deal – a couple of houses have already been relocated, a handful are under construction and one has recently been completed, according to Herron Todd White Toowoomba director Bradley Neill.

However Neill said the matter is quite complicated because while the majority of property owners participating in the land swap appear content, others would have preferred to have been offered the opportunity to sell their block back to the council for the value their block was worth pre-flood, rather than be offered a flood-free block in exchange for their flood-ravaged one.

Others couldn’t afford to relocate or rebuild, even with the government funds available, said Neill.

Then, of course, there were those who weren’t given their preferred block of land.

“Some blocks have steeper sloping contours so it might be more difficult to build a slab home than other blocks,” said Neill.

The Lockyer Valley Regional Council reported that 49 per cent of the 72 flood-affected Grantham families participating in the independent ballot were granted their first choice of land lot; 75 per cent of participants were granted their top three preferences, and 85 per cent received their top five preferences.

Of the 105 flood-free blocks offered for exchange, sizes ranged from 1000 square metres, to 2000 square metres, up to 4000 square metres and 10,000 square metres, reported the council.

Neill said there are no sales through yet to provide an accurate valuation on how much higher the new land lots will be valued at compared to the old Grantham blocks.

“However in theory if they moved their flood-affected dwelling up to the new block it should be worth more than when it was sitting in old Grantham,” said Neill.

The same applies to the valuations of the flood-affected blocks recently handed over to the council, said Neill. “There’s only been two flood-affected dwellings bought by a local; one of the blocks was in front of his own property so he bought it for $92,500, pre-flood it was valued at around $200,000.”

Elders Gatton principal Barry Niemeyer said that “considering the blocks have elevation, views and no possible flooding”, it’s very likely they’ll be valued higher than the blocks in the flood-affected areas of Gatton.

Like Neill, Niemeyer said that until a block is sold in the new area it’s only going to be “a guessing game”.

Allison Graham of Gatton Real Estate said her agency recently listed one of the exchanged, elevated blocks for sale; it’s a 2020-square-metre vacant block and the asking price is $118,000.

Graham said the council had already set the new value on the rates notice at around the $130,000 to $140,000 mark.

A similar size vacant block “on the flat” with services pre-flood would have been valued at around the $90,000 mark, she said.

Niemeyer’s real estate agency in Gatton has taken a good proportion of Grantham flood-affected families onto its rental list and said the pressure on rental demand in nearby Gatton has been enormous.

He said when the families do move onto their new land lots the pressure will be eased a little, particularly important at a time when the first stage of the new Gatton prison was just opened last week, signalling the arrival of 350 prisoners and the 1.5 jobs per prisoner they’re expected to generate in the town.

“This new stage will drive demand for 600 dwellings. On my rent roll I have 280 properties and only four are currently vacant,” he said.

Neill said the investors were the ones who lucked out because the owner-occupiers were able to use the State Government handout – some reportedly received up to $150,000 in assistance – to pay for house relocation costs or to help fund the new build, while investors were denied these funds.

“A lot of the investors have taken up the land swap because even though they may be faced with a big capital outlay in the long term they’ll have a more saleable asset,” said Neill.

Graham said that while there weren’t a big proportion of investment properties affected – “because most of the rentals are generally in the more elevated part of lower Gatton near the school” – she knows of one rental property that was flood damaged however it was brick so the owner just made some repairs and renovated a little then moved some new tenants in.

“Another investment property was sold at a reduced price, the investor received an insurance payout, then the new owner even bought it in time to qualify for the land swap,” she said.

Read more: http://www.apimagazine.com.au/api-online/news/2012/01/mixed-feelings-on-the-grantham-land-swap
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Towns too risky for us, says insurer Suncorp

By Sophie Elsworth
The Courier-Mail
May 07, 2012 12:00AM

THE homes and contents of two Queensland towns will no longer be covered by the state's largest insurer as the fallout from the 2011 floods continues.

Suncorp has confirmed that new policies will not be offered in Emerald and Roma - two of the towns worst affected by recent years of flooding.

Existing policyholders face hikes of up to 10-fold.

Suncorp has a reputation for being the only insurer left in some towns abandoned by southern-based companies who are wary of massive payouts.

But Suncorp chief executive Mark Milliner said Queensland's biggest insurer had taken $4 million in premiums in Emerald and Roma in the past two years and paid out $150 million in claims.

Residents in southeast Queensland have already been hit with premium hikes after the January 2011 floods but Suncorp said it had no plan to spread its ban to the state's southeast because those floods were a one-in-100-years event.

Mr Milliner said it was likely the premium hikes in Roma and Emerald would "rise dramatically" and be "too expensive for many", leaving residents without contents cover for theft and other unforeseen problems.

"Many insurance companies have already made the conscious decision not to offer insurance in very high-risk areas. This is a move Suncorp has so far resisted," he said.

But Suncorp chief executive Mark Milliner said he now felt the insurer had little choice but to exclude Roma and Emerald "unless clear decisions are made to build or implement improved mitigation to protect the residents of these towns".

Read more: http://www.news.com.au/money/money-matters/towns-too-risky-for-us-says-insurer-suncorp/story-e6frfmd9-1226348201751#ixzz1u9OJpeag
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