Divided by a river: investors make both gains and losses after floods

The recent flooding in Brisbane has had both negative and positive consequences for Queensland property investors, with some suffering enormous loss, while others have made huge gains.

Brisbane property investment consultants, Grow Consulting Group, say the months to follow are expected to provide great opportunities to purchase property in flood-affected areas, especially on the river, for comparatively cheaper prices.

However, managing director Ayda Shabanzadeh advises investors to do their research.

"Investors can choose to hold and sell, renovate and sell, or development, but they need to proceed with caution, as properties in flood-prone areas can sometimes be difficult to obtain approvals for building and also loan applications," she says.

Shabanzadeh adds all investors, whether they were affected or not, should take the time to revisit their insurance policy to ensure they have adequate flood cover, and also insurance for loss of rental income.

"Property buyers should always check with their local council whether their property has a risk of flooding prior to purchase."

Those who were affected by the floods should also take pictures of flood damage and their clean-up efforts.

"Photographs are extremely helpful in documenting flood damage for insurance purposes. Keep good records, including how much of your personal time was spent on debris removal."

On the other hand, those who were not adversely affected may find their property has actually increased in value.

"A lot of people who are displaced due to flood damage to their primary residence will now need to look at renting another home while repairs are being carried out. We have been inundated with calls from people looking for property to rent. This increased demand will place upward pressure on rent prices too, and therefore benefit many property investors."