QLD Floods: When the worst happens, what can you do?
on October 1, 2011 by Mick Conyngham
Our head office is based in Queensland and here as well as across the whole of Australia I'm sure as we approach the anniversary of the Queensland floods top of mind is what the floods mean to you as a property investor.
First off as an investor, no matter where you're buying it is essential that you understand the risks of flooding within a given area. Do your research. As an example, the Below Market Value 88 Point Due Diligence Checklist covers flood risk - our sourcing team will always investigate the potential risk of flooding with each development. Local council websites as well as land developers in the area are a great resource for flood research. Do your research before you buy and if you find the property is in a flood area then its up to you whether you accept the risk.
The next consideration is Insurance. To add to the devastation of loss of homes and life is the realisation that many of those homeowners in flood affected areas will not be covered by their insurance. A little known fact is that in most cases there is only one insurer in Queensland that will cover you for flooding and storm damage. Many of the 'budget' providers wont cover you so its important that if you are at risk of flooding that you know what your insurance covers you for.
In Australia if you hold a mortgage you must insure your property. You also have the option to self insure for some insurance options not required by the lender. How this works is each week set aside a certain amount for each property into an 'insurance account' to accumulate over time and if something goes wrong and fund it from your own pocket. If you have questions on insurance give your Property Consultant a call and they'll be able to point you in the right direction.
Finally, what do these floods mean for the future? With the destruction and damage caused by the floods, interest rates have stayed put over the last 6 months and look like staying put for the next 3 months to give everyone a chance to get back on their feet. So I guess thats the silver lining in one hell of a storm cloud.
We wish all the best to friends, family and all those in the affected areas, our thoughts are with you. The spirit to rebuild over the last 6 months is something everyone in the various communities should be proud of. And as always if you have any questions on any of this give the team a call on 1300 533 713.
Invest with knowledge,