Homes destroyed by the 2022 New South Wales floods are selling at prices reminiscent of 2005

Aerial view of Lismore homes earlier this year. Photo: Bradley Richardson/Australian Defense Force/AFP

The flood-destroyed homes that devastated New South Wales earlier this year are pouring into the market at rock-bottom prices, sometimes close to the prices at which properties traded in 2005.

Many of these properties were a ceiling-height mess of mud, debris, and warped walls with swirling flood waters.

They were then felled, stripped to uninhabitable shells of timber beams, and listed as opportunities for renovators to pick up a bargain.

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Most of the biggest discounts were in areas at the center of this year’s unprecedented disaster, described by the weather bureau as a “rain bomb.”

This flood-damaged home on Union Street in South Lismore is on the market for $260,000, almost half of its 2021 price.

These locations included the towns of Lismore, Ballina, and others in the Northern Rivers region of northern New South Wales and parts of the Port Macquarie region of central New South Wales.

There are also occasional flood-damaged homes for sale in northwest and southwest Sydney.

Agents reported that many of the owners who sold their properties were “too dilapidated” to live on and did not want to go through the ordeal of restoring them.

Some received cash payments from insurance companies and relocated to higher ground.

A pair of home sellers who paid more than $500,000 for their South Lismore home last year recently listed a property overlooking the Wilsons River for $260,000.

Lismore’s flood-damaged Union Street home is on sale for $170,000, $20,000 more than it sold in 2005.

For sale at $39,000: The price of this flood-damaged home in Kingscliff has recently been reduced.

The traumatized owner is reported to have told agents that he never wanted to live in the area again because he had “lost everything” and that he needed to “move on” after an exhausting year. .

A flood-damaged house on nearby Union Street is selling for $170,000, just $20,000 more than it sold in 2005. The Arthur Street home is on the market for $295,000.

Similar deals are being made in Mullumbimby in the Byron Bay region hinterland, Kingscliff in the Tweed region, and Richmond Riverside towns near Ballina such as Woodburn and Broadwater.

Owners face an uphill battle over sales. With building costs up nearly 30% in the last 18 months, he said, lumber shortages and business overcrowding, buyers wanting to refurbish are dwindling.

Residents of Lismore are evacuated as a major flood warning is issued for the Northern River in New South Wales

Massive cleanups have taken place in towns like Lismore.Photo: Dan Peredo/Getty Images

“We’ve been on the waiting list for months to get a trade at Northern Rivers,” said Katrina Uryat, a local agent for One Agency.

“Many residents haven’t gone home yet. Most services in town are still closed. So much work needs to be done, and so little money.”

This comes as flood-prone communities prepare for another rainy La Niña event this summer after warnings that river levels are rising again and could hit more homes. .

Ulyatt said the Northern Rivers community is in crisis. “Everybody thinks there will be two lightning strikes. I have lived here all my life. increase.”

Matthew Jones, spokesman for the Australian Insurance Council, said new buyers of homes in flood-prone locations would be virtually unable to obtain insurance, resulting in a lack of financing. He said it can be difficult.

“Banks won’t lend against it unless it’s bought outright,” he said.

Flood Damage: 13-17 Coleman Street, Bexhill, NSW is for sale at $339,000.

The 2022 floods in NSW and Queensland were the most expensive in Australian history, costing the insurance industry nearly $5.3 billion, according to Insurance Council data. That’s three times his 2011 flood in Brisbane.

Jones said some communities have to make “hard decisions” about where they want to build and keep their homes.

“Once homes are devalued, owners have little incentive to keep them, and only those who want to live there lose their income,” he said. “Some of the most vulnerable people will be stranded in places exposed to extreme weather risks.”

Benjamin Conte of Wall Murray and Co First National, which sells a range of flood-damaged homes, said there are merchants who are optimistic about the investment potential in the homes.

He cites the current rental crisis as an incentive for builders to swoop in and acquire properties with high rental returns.

“Some homes are selling quickly,” he said. “It’s primarily for merchants, and they plan to build it out of more flood-savvy materials.

“We’re used to flooding here. We have the idea of ​​rebuilding and going back to smaller floods, and next time we’ll just have to hose out the mess.”

Homes destroyed by the 2022 New South Wales floods are selling at prices reminiscent of 2005

Source link Homes destroyed by the 2022 New South Wales floods are selling at prices reminiscent of 2005

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