Far out Friday: Wild weather sweeps $500,000plus off beachfront home values

by NZ Adviser10 Jun 2016
Wild weather in Sydney has left its mark on nine exclusive home beachfront properties in Collaroy that had a combined value of around $28.65million. 

Two kingtides swept away part of the coast and a hefty chunk of the properties’ monetary worth along with it, with some possibly worth 10-15% less than before the storm, according to the Daily Mail.

Homeowners may not be covered by insurance as standard policies don't cover storm surges.

Front yards, swimming pools and balconies had crumbling into the ocean with up to 15 metres of the coastline.

“I'd be very surprised if they were going on the market in the short term,” PMS Property analyst James Freudigmann told Daily Mail Australia.

“I think to understand the difference in value will take 12 to 18 months for one or more sales to occur and determine the difference.

“The Sydney market has had such strong growth and then this has occurred - it might make buyers a bit more wary'. 

The nine homes are built on sand banks and are now in danger of being written off if they were to be hit by another king tide thrashing.  

However, many of the beachfront Collaroy homes are not likely to be insured against damage from the sea, said the Insurance Council of Australia (ICA).

Most housing insurance policies don't typically cover 'actions of the sea', which includes coastal erosion, king tides or storm surges, said Fuller in a statement.

“A small number of policies on the market will cover actions of the sea under certain conditions,”' he said in a statement.

“Ninety-three per cent of all new home insurance policies purchased in Australia now include cover for flooding (under the standard definition), but neither actions of the sea nor the effects of gradual sea level rise are considered to be flooding for insurance purposes.”
 
 

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