Home' Be : Be Issue 11 Contents Be: Resilient
FLOOD OF RESEARCH PROJECTS
CQUniversity has poured almost $200,000
into research projects to address issues
raised during the recent floods throughout
Queensland and elsewhere in Australia.
The special Vice-Chancellor's Engaged
Research Initiative has given life to projects
ranging from the preparedness of tourism
enterprises and the economic impact on
transport corridors to reduction of risks
caused by horticultural nutrients flowing to
Researchers will gauge the social impacts
from prolonged exposure to flood debris,
including both natural and man-made
materials, and also check patterns of price
depression and recovery among properties
in areas affected by flooding.
Another project will evaluate the role
of flood-related writing workshops in
promoting community identity and healing.
Researchers will also use a participatory
framework to allow people to make sense
of the flood events and to build community
resilience for protection against future
Ian Clarkson is
a Fellow of the
is a lecturer for
Bachelor of Property
program. As a
he has 27 years'
He has launched
a research project
in the behavioural
on evidence from
suburb of Depot Hill.
Hope for flood properties
With 27 years' experience in the Queensland property industry, from Brisbane
and the Darling Downs to the Wide Bay and Capricornia, Clarkson has seen
the rise and fall of markets and understands what makes Queensland tick
when it comes to property buying. He believes while many would never
contemplate purchasing properties that are in flood zones, affordability of
these properties and potentially higher returns for investors willing to risk
the periodic floods on a lesser outlay, will still attract a number of buyers
especially as memories fade.
Anecdotal reports from real estate agents suggest that even before the
floods there was a shortage of rental properties across the State in the lower
end market. This is also supported by Realestate.com.au which is advertising
very few homes under $250 per week across the regions. With thousands of
people reportedly seeking rental accommodation since the floods, the surge
in demand will force rents up even more. Although bad news for renters,
Harcourts Real Estate blogger Aaron Brooks said it could be a great time for
investors to enter the property market. "We're sure to see incredibly low
vacancy rates and high levels of demand over the coming months."
Hot tips for property buyers
Property buyers however will need to do their homework. While property
advice is often subject to opinion, the most common slogan bantered around
is 'Location, Location, Location', however Clarkson believes this too is up for
negotiation. "It really should be Location, from what?" He argues that home
buyers should have a close look at their needs and choose a property that is
located close to where their lives take them.
"It may not be advantageous to buy a home say on the Capricorn Coast if you
constantly need to take children to Rockhampton for afterschool and weekend
activities. An infirm person may find medical facilities and closeness to
family a driving force whereas a young family may be thinking schools, shops,
transport routes to work etc." Investors should also take into account location,
but as it relates to potential demand and desirability from tenants. "It is the
demand which equals good rent, and good rent equals
good returns as an investor is interested in retur n on
investment and tax advantages," Clarkson said.
Clarkson warns that the Australian property
market cycles with booms and slumps. "In property
you generally should be taking a medium to
long-term outlook and not trying to get in and out
for a quick dollar. That does occur, but not often.
When a boom occurs, flood properties may become
over-inflated with regard to price as people do not
place enough emphasis on the risk factor in their
calculations." The next boom therefore could be the
best time to cash in on your investment.
In these post-flood times, Molloy believes
Queenslanders should be confident in their property
investments. "While we may be in the middle
of a subdued market, we need to remember that
hundreds of thousands of homes were not affected
by the floods which should reassure homeowners
and investors that the viability of the Queensland
property market remains sound. As the rebuilding
phase takes shape, and with it much-needed
financial stimulus into our economy, the R EIQ
envisions that the property market will prove
resilient as it did 37 years ago."
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