Updated almost 12 years ago on . Most recent reply
I'm against buying flood zone properties, but that's just me...
Met with a CPA this week and he said that he thought the 180 degree opposite of what I think; which is to stay away from flood zone property, the rates are escalating and the flood maps are being redrawn and flood insurance premiums will continue to increase in the coming years and this will have a negative effect on re-selling FZ properties. Buyers will not be able to get financing without paying high rates and the buying pool of cash buyers, who also don't care about flood hazards is small.
The CPA counterpoint is that he can buy these properties at bargain prices due to the fear an angst surrounding FZ props. He would buy them for cash and not have to get financing and therefore would not be required to get flood insurance. He effectively would be self flood insuring these properties, keeping them long term and renting them out.
What say you?