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Avoiding Disaster Have you considered the natural disaster risk in the area you are looking to buy?

The natural disasters that occurred early this year have forced buyers to re-evaluate areas in which they want to buy. Buyers are asking themselves how much they would lose if a natural disaster occurred in their area. The Herron Todd White May review looks at flood and fire prone areas in various states and how natural disaster risks may or may not affect property values and insurance premiums. A good example is the Fairfield council area in NSW. About 30% of properties in the region are affected by floods to a certain extent and recent transactions show that land values are 10% - 20% cheaper than similar land values outside the flood zone. Remember to consider the natural disaster risks associated with a particular area as much as the property itself.