Brisbane's house prices are at historic highs, but homes in flood zones are taking longer to sell and are going under the hammer for less.
Some buyers say they are prepared to risk occasional flooding for a lower price in a good location.
Posted by sktafe2020
13 Comments
Buying flood homes on stumps has become super popular. They’re getting jacked up to 2.5 stories high and fully renovated. Anything on a slab is getting knocked down and replaced with a pole home. It’s not a bad idea as those houses are now very unlikely to flood, despite being in the flood plain.
It isn’t a bad choice necessarily.
Far cheaper for what you are getting, and if the insurance gets too much you can quietly stop renewing it. The bank probably won’t notice and the government will likely offer generous assistance if your uninsured home is damaged.
Yes they are we had 2 meters of water under our house in 2022. Houses lower down in surrounding streets sold for $1million plus last year
I don’t know how anyone can afford to rent in Brisbane.
Our rents increased 67% in two years post-covid, housing prices are higher than Melbourne, but Brisbane wages are pathetic in comparison.
Brisbane is actively hostile to the working people trying to live in it.
The reason we have houses in flood zones is because they keep getting forgotten when people see slightly cheaper prices.
Why wouldn’t you? Wait for it to flood so tax payers can bail you out is the best move economically
Three years ago you were looking at 1.3m for a place that was insurable in Sherwood. Probably 1.8m now.
When they redid the mapping in 2018ish my insurance tripled so I just removed flood cover. It was a fully hardwood Queenslander, I figured if it flooded it would just need a hose out and a paint.
I own several houses in flood and overland flow zones including my own home and two rentals. Providing the house is designed with both robustness and resilience in mind it is not an issue. It is no different from living in cyclonic or earthquake prone areas.
I would buy another if the price is right.
For my own house, it is on stumps with a floor level about 1m above 1%AEP. Only the carport is on ground level. There is a shed that is about 200mm above ground. The block is covered in water at least once a year, sometimes several times. Everything of importance is lifted from floor of shed at all times as you never know when a rain bomb can strike especially in summer. The car gets moved up the hill for major rain events and you generally know they are coming days out from the effects of the event. It is extremely unlikely that water would would ever get up to the house but in the future there is likely more times the house will be cut off due to flood waters.
The other two houses are rentals. One is double storey and was originally a single story when I bought it. Bottom floor is only 300mm above 1%AEP. Bottom story was gutted and made flood resilient. Upper floor storey was added. Bottom floor walls are now blockwork. No electrical wiring under 1m above floor level. If and when flood waters reach this floor the response will be a pressure wash and potentially replace a couple of built in cabinets ( down stairs laundry and bathroom) and bedroom doors ( x3). House is insured for alll events apart from flood. In case of flood it would cost maybe $5k to “make good”. It is fully compliant flood resilient build but the difference in insurance still makes self insurance for flood a better solution.
The other house is of similar state to the above and in same area. Currently insured for all events including flood. It will flood one day and I will claim the insurance with the intent of doing the same as the above house i.e. keep the slab, replace all walls with blockwork on lower floor and add new second story extension. It too will eventually be a flood resilient structure and I would likely not insure for flood.
I have never really understood why people want to live in the flood affected areas personally. As long as 50c fares are operational, you can negate the inner city location with easy train accessibility imo.
Ive been seeing houses in jindalee in the flood areas going for more than what our street has been going for and we arent even close to flooding at all.
A House sold in the old part of jindalee with a medium risk of flooding for 1.49miliion not long ago. Stupid.
Check out the cost of flood insurance. I live in a flood zone but the didn’t have experience any damage in 2011 or 2022. I play $958 a month for coverage and this the cheapest and only company that doesn’t cost +$1500 upwards
My property is classified with overland flow, but because it’s raised up our insurance is standard. We just had to drain our pool when the overland flow did come through, once in 8 years. But prices are around $300k below others without overland flow.
A matter of what risk and budget you are prepared to consider. We got an 800m2 block with no rear neighbors for the same price as a 400m block 2km further from the city with less transport options.
At least we can kick the football with the kids in the backyard
Good luck with your insurance costs