Let The Home Buyers Be Aware Do Not Buy Property With Future Natural Disaster Risk
In spite of, or perhaps because of the current economic chaos, there is an ever growing number of Home Buyer Firms coming into the UK market. These are either private individuals or companies who have arrived at the decision that, even with Property Prices sinking, it’s still a far better bet to put spare funds into Properties rather than leaving it in a Bank.
The judgement behind this is simple enough. Big deposits in banks along with any money belonging to companies are not insured by government guarantees, so could in theory disappear if the Bank folds. Properties on the other hand can’t under normal circumstances disappear. It’s also implausible that their values will plummet to anything approaching zero, and in the medium to long term, it’s very likely that they’ll recover as the financial climate picks up.
Nevertheless, it’s simply too easy for the Property buyers to get carried away, and save up more problems for themselves. Let’s just stop and consider for a moment about what that phrase “under normal circumstance” means. Just as we are seeing monstrous upheavals in the economic climate, we must also be aware of the potential changes in our real climate due to global warming.
These changes could have a disastrous impact on the value, and maybe the continued existence of any Property you may pick as an investment. The House Buyer who’s buying for an investment or as a safe home for his spare money may be tempted to just look at the findings of a good survey which sets out the value and condition of the house along with any current threats that may affect it.
A “real” House Buyer who’s planning to live in the Property will look much more attentively at such items as coastal erosion, increased rainfall, old mining works, altitude, current and future industrial, commercial and Infrastructure developments, schooling etc. etc, and make his considered opinion about the effect of these during his lifetime.
Anyone lucky enough to be cash rich at present can be forgiven for keeping their eye firmly on the current economic chaos and its probable consequences. However, when buying Properties as an alternative to money in the bank, you need to treat the due diligence as seriously as though you were going to live in the Property.
To paraphrase: Let the Home Buyers beware! When people purchase Properties to live in; they make sure of all sorts of things; like current and potential future risks of flood, storm, landslip and other risks. It’s much too easy for those who buy Properties for investment to forget these aspects.
These kinds of buyers often just look for a call from a house owner in trouble to “Buy my House”. They jump on the opportunity with a minimum of effort, and go back to running their businesses. However, before I Buy Houses, I take as much care as if I was going to live there myself.
