What a view may take a back seat to how safe is the house going to be if it is near the water. That is the basis of a recent article on how market forces are effecting there real estate market in coastal areas. Yes, we all like to be near the water. Yes, those that can afford to will probably always build near the water.
The most interesting aspect of this article is the fact that the free market is moving faster than our elected officials in changing how property near the cost is viewed. Specifically, that water front property may be the next dot-com bubble.
In some cases real estate deals are falling through due to high flood insurance premiums. This makes sense and those premiums probably need to go even higher.
The end result is that market forces are recognizing that we cannot control coastal flooding with man made systems. Just as in war, we tend to build for the last event, not the next event.
Who will lose? Everyone and mostly those that think that investments near water are a good bet…However, and to be sure, the banks and developers will be living on higher ground with the unwitting buyers money.
Read the full article:
Perils of Climate Change Could Swamp Coastal Real Estate
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