Property values fall in Queensland flood zones
Posted on | May 18, 2011 |
Queenslanders in flood-affected areas may be hit with an after effect of the flood, with a sharp drop in land valuations. This has exposed thousands of victims with mortgages now greater than the worth of their homes.
The Queensland State Government revised valuations of 23,000 properties impacted by the floods, and its estimated that price drops have been between 5 and 25 per cent. This could result in cuts to council rates, assuming its passed on by local governments.
However this rate relief will provide little comfort for flood victims with properties not covered by insurance, and now worth less than what they owe the bank.
The full impact on individual properties will be revealed on Tuesday when annual valuation letters begin arriving in the mail.
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