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Every time I go through Brighton I am struck by how if it was anywhere else in the world it would be an expensive neighbourhood. I never knew about the ownersh

• robocat 4y ago
  My theory is the dynamics I mentioned above. Investors waiting for it to boom so they can cash in, however investors allow decay so values never rise. Meanwhile be very careful buying anything in Brighton within the 1:50 year floodzone which is a huge percentage of the homes (And beware in much of Christchurch). You think your odds are okay, but sea level rise means the risk increases over 20 years, and the sum of the risk ends up very freaking high over decades. If there is flooding, it will be like the earthquake. Prices will drop drastically within whole suburbs, houses will become uninsurable, and as-is prices will occur. Some suburbs will become very undesirable, which will have severe negative value. If you have a mortgage, you can lose all your money due to gearing. Meanwhile over time insurance premiums are going sky-high - mine went up 33% last year and I’m on a higher part! Don’t buy in floodzone areas. I am going to buy a bare property on the hills to hedge my potential losses since I can’t insure against sea level rise. If there is sea level rise, my property will decrease in value, but hopefully that is offset by an increase in value of a hillside property. Cheers