What the 2011 floods mean for property prices, six years on
THE Ipswich property market still has a long way to go before the devastating impacts of the 2011 floods are forgotten.
Homes completely flooded, destroyed in rising torrents or that even got only wet feet sit on the market for months without an interested buyer, with price points up to $150,000 less than what they would otherwise be worth.
State-adopted legislation stipulates properties that were not impacted in 2011, but were in 1974, are still considered to have flooded.
It means properties that had only a puddle of flood water on them in 1974 but were high and dry at the 2011 event are labelled as flood-affected.
REIQ Ipswich zone chairman Darren Boettcher was a child when the 1974 floods hit Ipswich and he said it was still fresh in the mind of buyers when he started in real estate in the early 1990s.
"Being a young person in the real estate industry, I had memories of the 1974 flood and the impact it had. I knew one day it would happen again and it has. It took a long time to get over 1974 and then in 2011 it brought it all back," he said.
"The worst thing that ever happened in the Ipswich property market was the flood. Ipswich took a really big hit.
"Probably one buyer in about 25 would consider buying a flooded property. The minority don't mind but the majority do."
Mr Boettcher said sellers with flooded homes should expect properties to stay on the market for longer and for buyers to pay less than they normally would.
He said while sellers were left out of pocket, potential investors had plenty to choose from for bargain prices.
"If someone had a whole new house that has a new kitchen and bathroom, is fully renovated with paint and carpet and it's fully insured, if they hang on to it for 20 years, they will reap a benefit," he said.
"There are some yields for houses that are flooded.
"A home at North Booval sold for $188,000 and that buyer is making a $300-a-week rent return. Rent is going up all the time and with the small amount of money put into it, there is a very low risk factor.
"If you buy a house that is not flooded, you will appreciate the price quicker over time than you would a flooded house. You are going to pay upfront but you get the same rent for a flooded house that's not flooded.
"Every 30 years it gets a new kitchen, bathroom, pain and carpets."