Waterfront Properties May Lose Their Value
Water is among the most generous elements of nature but the statement does not hold ‘water’ for the real estate portfolios. Terry Ryder for the ‘Property Observer’ notices that waterfront properties are no longer as desirable as they used to be. In fact, they may turn out to be a serious liability.
This is not entirely unexpected. Water levels are rising all across the globe due to global warming and subsequent melting of glaciers. This has made water frontage properties vulnerable to flooding and land erosion.
Ryder contests that “There will come a time, not too far distant, when water frontage will render property near worthless – in some locations, at least.” His logic is redoubtable. It is backed by current trends.
Prestige market homes losing their front acreage
Many millionaires have lost the front acreage of their homes to seaside erosion. It has happened at Gold Coast, Byron Bay and in fact, Prestige market properties in Port Fairy’s East Beach (Victoria) are at risk of severe erosion too.
Discouraging results from a study
The University of New South Wales has conducted a study that pronounces difficult tidings for a 22 kilometre strip in and around Port Fairy. The study believes that about 270 homes are under the threat of submersion. This number might go up to 400 if water levels rise 0.8 metres (already a strong oceanic forecast).
Local councils using pre-emptive moves
Ryder cites the example of local councils to further his point. Already, the councils are banning property construction in water-laden areas. A few zones are so susceptible that the homeowners have been asked to demolish their homes in advance.
“Beachfronts destroyed-beachfronts revamped- beachfronts destroyed again” are such common scenes. The money used in replenishing these areas is wasted and it hurts the taxpayers’ most.
Riverfront properties are suffering equally
Areas proximal to riverbeds are suffering just as much. Storms ensure that the very same locations get flooded each year. Even the most inclusive insurance policies are fast inserting disclaimers or “exclusion clauses”- you cannot claim for submersion or damage caused by erosion.
You can read the original article here.
The Times They Are a-Changin’
Long-held notions of real estate are being challenged and it is quite befitting that waterfront properties are not being considered desirable any more. After all, what sense is there in buying a property that is scenic and soothing to the eye but just as eager to gobble you with its next tide?
Is your waterfront property appreciating in its worth as much as you had expected?