By Gold Coast Bulletin columnist and host of Lifestyle Channel's Selling Houses Australia Andrew Winter
OVER the past few years Australia has had its fair share of natural disasters, with terrifying bush fires sweeping across several states and devastating floods a regular feature of our summers.
Some blame global warming, some Mother Nature's natural cycle, some the Carbon Tax and I bet Kyle Sandilands will be held responsible in some quarters. The truth, of course, is that we have very little control over these natural phenomena. We can only prepare and make informed decisions about how we act, or don't act to protect family and possessions.
But as the fires are extinguished and flood waters recede, and we honour all those amazingly heroic volunteers and community members who made such a difference, what are we actually left with?
Some will be able to return home, some may have nothing to return to, or what is left is in such a state they don't know where to start. A few may find the whole experience just too harrowing to even consider going back.
After the Brisbane floods of 2011 the smell of the flood-ravished homes was so pungent it forever scarred a place in our olfactory memories. Devastation to a home is always an overwhelming experience emotionally -- because these places are our homes, where we live, surrounded by our possessions, families and our memories.
They are also for so many of us our biggest financial commitment -- one that is tied to our lifestyle and dreams for the future -- and our biggest debt. So when disaster strikes at our once immaculate dwellings, it is a double blow -- the first to the emotions, the second financial.
What is the place worth now? What is the cost to repair? Do you want, or have, the emotional energy to repair it and rebuild? And do you really have any options? Will you ever be able to sell in this area again? Suddenly your once lovely quiet suburb -- an area previously only known by locals -- has its name plastered all over the media as a scene of devastation and soon to become property black spot. Only you can decide if you want to stay, move, refurbish or walk away?
I have closely watched this in both flood and fire-damaged areas over past years.
The good news is that quite often values simply bounce back with time. There is that great Australian resolve, the question of what has been done since to limit the risk of it occurring again.
And some buyers will never be put off, seeing it simply as part and parcel of living in areas of such natural beauty.
If you have a mortgage and disaster strikes, work with your lender as most banks have procedures for dealing with this and payments can be stopped for a period of time.
The key issue for all is insurance. Ensure your insurance coverage is adequate and carefully read the fine print.
Unfortunately, it has been the case where some insurers have sought to avoid settlement or made particular areas uninsurable without a premium only Clive Palmer's bank account could accept.
If you are selling in one of these markets, what do you do?
You need to have insurance to put potential buyers' minds at rest.
If you are in an area where insurance is an issue, you may need to consider a bit of a campaign as it won't just be you that is affected. Promote as part of your marketing what your premiums are so buyers can compare.
Buyers need to do their research. If it is a high-risk area, that doesn't mean your particular proposed purchase is actually at direct risk or is uninsurable.
If insurance is pricey, your comeback is to ensure the house price is lower and balances out.
So sellers do not panic, please give the market time. Tidying up the house and renting it out is also an option if you cannot bear to be there.
Buyers equally do not be totally put off by past bad luck -- give an area a chance.
Quite often community spirit can be stronger in places where so many residents have a shared experience, which is an asset you can rarely put a price on.
For the original post visit: http://www.goldcoast.com.au/article/2013/02/02/446482_gold-coast-real-estate.html
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