Climate Valuation Report Offers Insight Into Dangers To Coastal Properties
Jason Dowling writes an article for Domain where he discusses the potential impact of sea level rise on properties too close to the coast. The coastal communities are under threat, and, like pest and building inspections, a climate change inspection should be very much on the cards. That is quite an idea that will surely help home buyers!
Assessing risk of waterfront properties
Coastal Risk, a recently launched website, offers prospective homeowners a way to figure out the impact of climate change on their properties. The site argues that a 0.74 metre rise in sea level by the turn of the century will be enough to affect various coastal areas, including, but not limited to, Middle Park, Albert Park, Williamstown, Cairns, Sunshine Coast, Gold Coast and Moreton Bay.
Climate Valuation Report
A Climate Valuation Report for those looking for a house is a pretty sensible idea and is likely to become the norm soon. There is a perceptible climate change, and phenomena like global warming would mean a slow but steady rise in sea level, thus increasing the chance of coastal erosion and inundation of coastal areas. This makes Climate Valuation Reports pretty relevant in today’s times.
Waterfront property vs property away from the coast
The Climate Valuation Report does not try to calculate market parameters like potential for capital growth or rental yield. It just makes an attempt to compare the value change in a coastal property in relation to another equivalent property unaffected by climate change.
When buyers have a report that tells them which communities are in danger and to what extent, they will be able to make an informed decision. If you are looking for a house in a suburb pretty close to the sea, you won’t mind checking these Climate Valuation Reports, says Dowling.
The report can work well for the renovation industry, too
It is odd that the report has not been given due emphasis till now. It is way too important an indicator and just like it is important for the new housing industry, it is relevant for the renovation industry, too. You read the report that says your home is in danger of being flooded and you raise your ground floor a yard. Does it not make you far safer?
The climate valuation report would cost $250 and if things go right, it may also cover probability for severe wind and fire damage. Keeping tabs on every possibility, the report will offer a climate-adjusted value for each home.
Insurance providers stick to standard definition of flood
It is interesting to note that insurance providers endorse the standard definition of flood but do not cover for the actions of the sea. So, if a king tide damages your home or it is inundated by a rise in sea level, you will be left without insurance coverage.
You can read the original article here.
The Climate Valuation Report seems to be a brilliant new find. Its $250 price tag is nothing considering the fact that any property hunter looking for over a year spends in excess of $20,000 even before finding the right property. What is $250 anyway when you compare its proportion to the overall investment of property hunting?
If the Climate Valuation Report says that a property may be inundated in 15 years’ time and the owner proposes to resell it in 10 years, what should his/her game plan be? True, the owner’s life and that of his/her family is not in danger but there is a concern.
The person who buys the property will know at the time of resale through the Climate Valuation Report (if it is after 10 years as discussed) that in another 5 years the property will be under water and surely he/she will think twice about buying such a property. At best, it will be sold but at a clearly negotiated price. So, it is easy to fathom the importance of such reports. You will be better off making your home-buying moves in accordance with their conclusions.
