How Big is Real Estate Risk? … A Realtors’ look into the 2013 Calgary Flood.
A Mitigated Risk.
That’s what they said when they decided to open the gates, knowing the result would be flooded neighbourhoods in Calgary. They opened the gates anyways. Within hours, the flash flood turned Emergency, covered homes and land within the city. In moments, people who resided in the area lost their belongings, inside and out of their homes. You should know, insurance doesn’t cover ‘Acts of God’. A definition often defined by convenience and not circumstance.
My Grandpa owns and lives in one of those unfortunate homes in Bowness. When my cousin told me that she was Kayaking to his house I wasn’t fully appreciative of what that really meant. A week after residents were allowed to go back into their homes, I went down to take a look at what was going on.
Now, volunteer efforts from supplying water, to cooking food, even to Edmonton Firefighters who showed up on his front step to do the heavy lifting have to be commended. Thank you to all Edmontonians and Calgarians who ended up helping Joe, we sure do appreciate it.
Water in the basement. Ha! This has killed a deal for me in the past. Small, tiny amounts of water, usually caused by a lack of eaves-trough headers or improper sloping around the home. 95% of all homes we inspect have improper grading. Gardens are recommended to be planted around the home to help with absorption.
Grandpa’s home, did not have one drop of water come into the basement, before last week. Yet in one day, everything and I mean EVERYTHING below ground was wiped out. Erased. Gonezo’s.
So what do you do? How do you reduce the risk? I say reduce the risk, because that’s just it… Real Estate Investing has it’s risks and rewards.
– Make sure you have your home owners insurance.
If your home is too high you may be at risk for windstorms, too low and you may be at risk for flood. The possibilities are endless that you may come into contact with. So why invest? Why move forward with Real Estate?
My Grandpa owned his home for 50 years before this occurred. Even with the costs of repair and replacement, he will still come out ahead when he wants to sell, as he’s been in his real estate game for a long time.
Often, I get asked by clients if they will be able to make a profit in the years ahead on the purchase they are about to make. Yet, I don’t have the crystal ball they are looking for. A person moves forward with Real Estate because they recognize the risks and they recognize the rewards. They believe they have more chance of reward than of risk and they are ready to take that calculated risk. Not a mitigated one.
Keep your insurance up to date people, and don’t buy a few feet from the waters edge.
Now that’s the Cats Meow in Real Estate.
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