Bargain hunters looking to make a property purchase in the post-flood Ipswich property market are having a difficult tome finding a lender who will agree to provide home loans in flood affected areas.
Herron Todd White senior valuer Brett McGrath said despite 3300 homes being written off and 1700 needing repair from January’s disaster there are a lot of home buyers and investors prepared to buy a property in Ipswitch. However most buyers need to obtain a home loan – therein lies the hitch. Banks are not prepared to offer finance in high flood risk areas.
“There are many buyers keen to purchase flooded homes but the banks are not financing loans,” Mr McGrath told a luncheon for more than 120 people at The Ipswich Club yesterday.
The only properties moving off the market are a result of cash purchases, where people have access to funds and do not need a home loan.
“But those who want to borrow to buy are not having any success at all.”