Powered by MOMENTUM MEDIA
subscribe to our newsletter

Climate change key in home-buying process

Climate change has become an important consideration in the property process, with more buyers assessing its potential impact before locking in their desired home.

According to REIQ CEO Antonia Mercorella, climate change has become “the new due diligence”, with home buyers putting this on their agenda alongside the typical building and pest inspections, utility access and land boundary checks.

“While ensuring your home is built to withstand the harsh Australian climate has always been important, in today’s world, weather and environmental conditions are being more carefully considered,” Ms Mercorella said.

“With the government estimating increases in temperature, drought periods and bushfires, along with rising sea levels over the next few decades, home owners need to research whether or not these risk factors are relevant to the area in which they’re looking to buy.”

Increasingly, prospective buyers are researching the history of the area in terms of natural disasters and other weather problems, and how these have impacted homes.

This includes major flooding, fire and severe storms occurring in the area over recent years, Ms Mercorella noted.

On the opposite end of the scale, Ms Mercorella said sellers are also doing their research, utilising councils for any information they hold about potential climate change risks to their properties.

“Vendors need to be aware that buyers will have questions with regard to the possible impact of climate change,” she explained.

“They may even cite global warming or other weather risks as reason to reduce the sale price of your property.”

Ms Mercorella said when it comes to due diligence relating to climate change and weather, it was important to “be alert, not alarmed”.

“Make sure you receive your information from credible sources,” she advised.

“Don’t make decisions based on rumours or hearsay. But as always, due diligence is crucial when making what will most likely be the biggest purchase of your life.”

Advertisement
Advertisement

PROMOTED CONTENT


Climate change key in home-buying process
Climate change
mortgagebusiness

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

Latest News

Reverse mortgage lenders have accessed a small fraction of the potential retiree housing market in Australia, according to Deloitte. ...

Pepper Money has priced its second I-Prime deal for the year, upsizing the figure to $850 million. ...

The LMI provider has announced a new CFO following the resignation of its current CFO, effective 24 September. ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.