Invest
Do natural disasters impact property investment?
Despite months of bushfires dominating the news cycle, investors are being advised not to avoid an area due to the threat of future disasters.
Do natural disasters impact property investment?
Despite months of bushfires dominating the news cycle, investors are being advised not to avoid an area due to the threat of future disasters.
According to Propertyology head of research Simon Pressley, while some investors might be put off by disasters, adding it to the “things to avoid list” is an impossible expectation for any investor to place on themselves.
“The odds of your property being significantly damaged or destroyed by a kitchen fire or major water leak are probably higher than totally avoiding natural disasters,” Mr Pressley said.
Mr Pressley said every location around the nation had the potential for natural disasters, because Mother Nature does not discriminate, meaning investors should look at the fundamentals over disaster areas.
However, while locations can be impacted by disasters, smart investors never included “natural disasters” on their list of property markets to avoid.
“It is truly heartbreaking to see people lose their homes during the recent bushfires. It emphasises the importance of all property owners having adequate insurance,” he said.
Mr Pressley said that every location in Australia has probably been directly impacted by a natural disaster on at least one occasion, yet our nation is not littered with abandoned communities or ghost towns.
“Not only is Australia a wealthy nation, we are also a country of incredibly giving people who are prepared to financially and physically help those impacted by natural disasters,” Mr Pressley said.
Capital cities and regional locations had all been impacted by major weather events at one point in time. Communities have been rebuilt and property prices had continued to increase over the long term.
“Successful property investment has always been about selecting locations based on objective analysis of property market fundamentals, not on Mother Nature,” Mr Pressley concluded.
RELATED ARTICLES
About the author
About the author
Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more
Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more
Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more
Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more
Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more
Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more
Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more
Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more
Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more
Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more
Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more
Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more
Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more
Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more
Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more
Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more
