Live on the Water?
Your house may be less valuable!
Remember when you bought your property on the water? You said to yourself, this is great! They don’t make more land that is on the water and my value can only go up.
From my friend George with Stop Fema Now made me aware of this from a Bloomberg article:
“Sean Becketti, the chief economist at Freddie Mac, warned in a report last year of a housing crisis for coastal areas more severe than the Great Recession, one that could spread through banks, insurers and other industries. And, unlike the recession, there’s no hope of a bounce back in property values.” If the NFIP is not reformed the ramifications of the exorbitant rise in flood premiums “will make the 2007 housing bubble look like a walk in the park.” “
If you are thinking of buying a home on the water, even a condo, check the flood insurance situation. Then, get a quote BEFORE you go under agreement. Nothing worse than getting shocked.
Listing agents: get estimates of flood insurance before you list a home. This way, you will avoid issues down the road.
The dollar value of the yearly premium does take home values down. The more it costs to operate and the fact that there may be worse issues down the road make for a cautious approach to buying near any water.
Do your homework!