The 2018 Hurricane Season is now in full swing. This year’s forecast calls for 14 named storms, six hurricanes and two major hurricanes according to Colorado State University.
“After the devastating hurricane season last year, with over $282 billion in damages, homeowners are considering the consequences of owning real estate on the Atlantic Ocean.”
In 2017, Florida and the Virgin Islands suffered major damage from Hurricane Irma. In fact, The parts of the British Virgin Islands and Leeward Islands suffered complete devastation. For Florida, this was the first time it has seen a major storm since Hurricane Wilma in 2005.
Would I want to own real estate in the south where hurricanes are more frequent?
“Surprisingly, a hurricane has the opposite effect than what’s expected. Reports show that hurricane damages actually cause housing market prices to go up. Therefore, as a real estate investor, you should be inclined to invest in properties that surround the Atlantic Ocean due to this positive impact from these natural disasters.”
Is there no negative impact on the housing market after a hurricane?
The long term effect of a hurricane is a positive one. The short term effect is that sales are slower and usually take place at a lower price point. The Study from Colorado State University shows that only two months after the flooding in Texas from Hurricane Harvey, 31 percent of neighborhoods saw an increase in median home values.
Should I rent in areas that could see a hurricane?
The rental market is also affected by hurricanes. A study of the New Orleans area discovered steep rent increases after Hurricane Katrina.
Evidence shows it’s smarter to purchase a home because property values tend to rise after natural disasters. You must be proactive in protecting yourself however. Homeowners should make sure they have insurance that covers wind and water damage that may result from a hurricane.
Source: Forbes.com – Read Full Article
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