Thoughts!? "Climate change could end mortgages as we know them"

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well as it relates to earthquakes some of the most valuable real estate in the country sits squarely on the San Andreas fault.

think silicon valley right through Palo Alto  and SF.. I think becasue it only moves drastically about every 100 to 150 years it just becomes out of site out of mind.. and with new building rules .. they don't devastate like in other areas of the world with non reinforced construction etc.  As for fires.  having lived most of my life in the North Bay of CA we have seen devastating fires that burnt down thousands of homes.. these hills burn about every 30 to 50 years.. its the folks moving into what was rural areas that creates these issues.. but then think the Oakland fire 30 years ago 4500 homes burnt down there .. now you would never even really know it if you did not know what existed prior.

Flooding to me is the biggest issue and toughest to deal with..  

I recently read an article about how drastically outdate all the flood maps are for the majority of the country..... when and if they are very updated with new and more sophisticated models, it will radically change banks willingness to lend for those areas and the insurance premiums for those areas also

"Nobody denies that [climate change] is happening, that it's real, that it is going to have a material effect. But by and large, there is such an inertia in our financial system that this isn't even on the radar of people," said Rachel Cleetus

Going to have to disagree with this statement...... unfortunately MANY of the people in power 100% disagree that climate change is real....... so they will keep their head in the sand and pretend nothing is going to change

I remember the devastating floods in Queensland Australia when the powers that be allowed building permits for homes on 'ancient' flood plains because they were of the opinion that Global Warming would prevent future flooding.

KARMA's a b.tch !!

meanwhile ........ 


Next week's Arctic blast will be so cold, forecasters expect it to break 170 records across US

Doyle Rice USA TODAY 11/08/2019...."

@Jay Hinrichs @Pat L. @Ned J.

Gents...have you heard of any banks NOT lending in certain areas?  

Theory: if banks stop lending, would real estate investment lenders lend?  What are your thoughts this would do to the rental market?  

@Jay Hinrichs

Do you carry flood insurance? I am sure there tons of forums on this....but what is the worst part of it to deal with?

Originally posted by @Joe G. :

@Jay Hinrichs @Pat L. @Ned J.

Gents...have you heard of any banks NOT lending in certain areas?  

Theory: if banks stop lending, would real estate investment lenders lend?  What are your thoughts this would do to the rental market?  

@Jay Hinrichs

Do you carry flood insurance? I am sure there tons of forums on this....but what is the worst part of it to deal with?

we build in Charleston SC flood insurance is a normal process..  banks lend when they can get insurance.. if there is no fire insurance lets say then no bank loan.  no flood if they require it then no bank loan.. insurance dictates where they loan. 

and for rentals / commercial purposes loans lenders can be very choosy if they wish


@Joe G.

Aren’t we supposed to be In a recession right now? CNN said so. Wait, aren’t people supposed to be dying because Of the President? Wasn’t an ice age coming 20 years ago?

I have friends across the country, and one thing is for sure, man made hysteria is out of control in certain parts of the country. A mental illness if you will. In other parts such as mine, we live without a care of what media tells us, because most of it NEVER comes true. Some decades are colder some decades are warmer, and I can tell you who doesn’t have the answer- abc news.

Live your life and invest in good areas that don’t flood in any situation. If I obeyed the media and believed recession, “global warming”, we are all going to die, etc, then I would not be investing at all and would be out some great cash flowing properties. There is one thing you should fear- elected officials that despise capitalism, despise landlords and pass laws to hurt people that are landlords. California/ Portland are an example. You’ll be negatively impacted by this in your investing if you haven’t been already. THAT is what u should worry about.

We have property in South Florida where I lived for the first 20+ years of my life (on South Beach). We spent months looking for a bank to leverage, it was incredibly difficult and our interest rates ended up being 2 points above market due to flood risk. Ultimately, that was still reasonable based on the cash flow. The insurance premiums have gone up exponentially due to all the floods that we've had outside of any hurricanes or tropical storms. The property is now under water financially, basically, we lose money on this every month and most investors in this area won't touch it! We're feeling the very real effects of the changes that are occurring whether or not we accept climate change, its just happening and its costing us real money in an area where this NEVER happened. Now, it occurs as a regular part of life and its NOT sustainable.

Additionally, we have a small plex in Napa, CA and the cost of insurance (due to HUGE fires that are now part of the yearly drama!) there has more than doubled during the past three years, luckily, this property still makes money. Spent more than 13 years in CA and have seen this fire issue grow exponentially up and down the coastal states. At this point, we won't touch ANYTHING near the coast or near flood zones. Getting burned and underwater by these issues! You may not believe its happening until you have to pay for it!

@Scott Mac

Scott, I assume this to be a negative comment. Am I correct? "You seem to be seriously trolling with this entire post."

Generate discussion; maybe.  And here I thought most on BP were good people...

The established precedent is that lenders will still lend in those areas, they will just require that homeowners maintain adequate insurance, or "force place" it if they do not. This drives up the total monthly payment, which in turn drives down real estate values, since homebuyers can no longer qualify for a mortgage as large after that has been factored in.

One can find examples in NorCal fire country, as well as in hurricane country, and in areas prone to flooding from coast to coast. The article says that 50,000 people in the impacted area "can't" find insurance (& thus couldn't mortgage said property), but consumers aren't necessarily the experts at finding insurance... I've yet to find a house my insurance broker dude can't find a policy for (my income depends on it, so you bet "I know a guy").

Insurance went up in my area due to hurricanes and other flooding even though my area has little to no risk...makes no sense.  Some areas subsidize the industry (could use more precision).

Did you buy a property in a low lying area? It’s going to flood at some point. Did your insurance rates go up because of some event? Guess what, this happens EVERY FEW YEARS since insurance was introduced. Are you taking your marching orders from cnn? Chances are you are brainwashed. 15 years ago my part of Texas had an unexpected blizzard and no one had an issue with it. If that happened today, it would be the fault of cow farts, white heterosexual men and the orange man.

This is how insane things have become. I was red pilled 2 years ago and I’m never going back. If you believe in climate change , please don’t invest. I’ll continue buying logical properties while you sit on the sideline and wait to be told what to do by blue politicians. Ps- how how is this “recession” working out for you? Oh wait, that was fake too.

the banks know the truth that climate change is a big hoax to siphon money and redistribute it to other elitists and other countries and Fortunately millions of people have their head screwed on correctly and didn’t fall for the global warming / climate change fear tactics .im actually surprised that folks still believe in this junk science but let’s face it ,some folks will eat cat $&t if you spoon feed it to them !

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