BUYING PROPERTY IN A NATURAL DISASTER AREA
- Written by Melanie Toye, August 29, 2014
When a natural disaster occurs, it affects everyone. Including, the home owners where the natural disaster strikes. If the house is still standing, the significant damage caused inside, outside and even around the suburb, could see major re-works occur over the next twelve months.
Opportunity to buy a bargain
Home owners may have lost everything and simply are so overwhelmed with losing everything, they might want to sell and move.
The good news for the buyer is, the property is much cheaper than it would have been, before the recent natural disaster. But would you buy it? Questions must be asked, such as, would a similar natural disaster occur again in the same location?
Obviously, you could grab a cheap bargain from buying one of these areas. You could look at it, as an investment opportunity and rent it out. Many people who were living in the area and lose their living quarters, might want to stay in the area. To be close to the schools their children are attending etc.
Have a timed plan
You need to consider the real risk and potential of a natural disaster striking again. If not within the first twelve months, perhaps in the next decade. Therefore, it is important to consider how much profit you could make from this property by renting it out, to the short to the long term and possibly aim to re-sell when the natural disaster is nearly all but forgotten.
Review extra costs before buying the property
It is a tricky situation and one that needs to be thoroughly thought out before purchasing. Financial institutions, may put up insurance costs, in a zone that had a recent natural disaster. Funding for renovations to help withstand future natural disasters may be required, as well as general gutting of the place. If it holds substantial damage caused by the natural disaster.
Make sure you are getting a good deal, especially once you have added in the cost for insurance and renovations.
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