Location is one of the biggest considerations Australians typically take note of when buying a home, but with recent events such as the bushfires and flooding, is it also wise to consider natural disasters?
Simon Pressley, head of research at Propertyology, said property investors who worry about the potential natural disasters "should probably not bother investing at all."
"The odds of your property being significantly damaged or destroyed by a kitchen fire or major water leak are probably higher than totally avoiding natural disasters," he said.
Pressley believes that while it is okay to take extra precautions when buying a home, it is not a smart move to ultimately base a decision on the likelihood of a natural disaster happening in a certain location.
"Successful property investment has always been about selecting locations based on objective analysis of property market fundamentals, not on mother nature," he said.
Natural disasters are unforeseen events that no one can predict, Pressley said.
"While natural disasters are terrible to those directly affected, the volume of properties destroyed relative to media exposure is often not high. The recovery period creates a wave of work for skilled labourers and can also lead to major transformations and economic development," he said.
Collections: Mortgage News
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