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Buying house in flood prone area?

Discussion in 'Real Estate' started by Crusher, 5th Mar, 2010.

  1. Crusher

    Crusher Well-Known Member

    Joined:
    11th Jul, 2008
    Posts:
    83
    Location:
    Newcastle, NSW
    I've got my interests in a house thats in a flood prone area outside of newcastle.

    Purchase price is 370, last sold for 330 in 2007.

    Anyone had any dealings with homes in flood prone areas? Any idea on an insurance quote for flood insurance? Thanks.
     
  2. Johny_come_lately

    Johny_come_lately Well-Known Member

    Joined:
    1st Jul, 2009
    Posts:
    703
    Location:
    SE Queensland
    Only one answer. Don't do it!





    Johny.
     
  3. Johny_come_lately

    Johny_come_lately Well-Known Member

    Joined:
    1st Jul, 2009
    Posts:
    703
    Location:
    SE Queensland
    There is nothing more soul crushing than to have your pride and joy turn into a swimming pool. Water gets into every nook and cranny. The carpets are your least worry. Corrosion and mould lingers, along with wood rot. Then there's the battle with the insurance company. Was it 'runoff' or a 'flood'. Try re-insuring and you will find that your $700 cover is no more.

    Do yourself a favor and buy a house on a hill.



    Johny.
     
  4. Jacque

    Jacque Team InvestEd

    Joined:
    16th Jun, 2005
    Posts:
    1,885
    Location:
    Sydney
    Hi Crusher

    It really depends on how often it floods. For example, I own a home in a 1 in 100 yrs flood zone in NSW but it doesn't worry me, as the last flood was back in the 1960's. Do some further research- talk to council about flood dates, areas affected etc before committing yourself.