Buy before Selling, Overland Flood Path

[weera2500]

Hi there,

There is this property I randomly came across but now interested in buying - not as an investment but to live! Though I'd need to sell my current home to finance this, I'd have to buy first before selling as the auction happens way sooner and I haven't even started planning to sell. Is buying before selling common? Pitfalls?

Also, the property has an overland flood line going through when I checked on the Council GIS. Is that a big issue? I saw so many houses having that awful dark blue line going across their site hmmm. Should I avoid buying because of this?

Many thanks in advance

[John the builder]

talk to council about what this flood zone means

what about a pre auction offer subject to selling your house? or wait to see if it gets passed in and do the same

[Momo]

talk to council about what this flood zone means

what about a pre auction offer subject to selling your house? or wait to see if it gets passed in and do the same

You can't put conditions on any pre-auction offers, it needs to be unconditional.

[John the builder]

I said pre-auction offer not condition of auction.

You anyway have the right to approach the vendor and seek special auction terms (different deposit, longer settlement etc and anything else that is agreeable to them (even finance etc if they were silly enough to agree?))

[Momo]

Buying before selling is common, especially in the heated market like now ( in Auckland) which selling is generally not the problem, however, you do need to make sure you have enough time to sell it before the settlement, one of the way is to request vendor's approval on later settlement date before you attend the Auction, the pitfall for it is if you fail to sell within the time frame or the amount that you required for the settlement, then you will be taking the risk of late settlement penalty or lose the deal at the cost of your deposit.

Be a bit conservative on your house sales value if you going down that path. In regarding of overland flood path, some people might not like it, but it is actually quite common, I won't worry about it too much unless I am planning to subdivide or put a minor dwelling on the property which I will want to research a bit more about it.

[tulson28]

Isn't this what bridging finance is for?

[weera2500]

Thanks very much for the replies guys!

A pre-auction offer and/or asking to extend the settlement are definitely possibilities! I really thought buying before selling is a ridiculous thing but yep, in a market like Auckland it could be a possibility if I am conservative with the selling price of my current home. How long a time is a "good enough" time to market, sell and settle a property in Auckland?

The bridging finance option, I was told, is only possible if I have an unconditional offer for the current home; I am yet to put my current property on the market!

[casacamo]

The dark blue line is generally the indicator of where the water will flow during flood conditions. Unfortunately these weather events are becoming more frequent. Where is the property situated . Is it close to a waterway or in a valley. You could talk to council but more importantly your insurance company would need to be informed as it may involve increased premiums. Usually the line indicates 50 yr flood - lower level flooding but more frequent or 100 yr flood - less frequent but higher volume

[Ivan McIntosh]

I had a 100 year flood plain on a property I owned, but it flooded twice in ten years, and came close on many occasions. Times are a changing.

[John the builder]

IM

define flood

[Ivan McIntosh]

Water around the house a foot deep with several inches flowing through it...

[RollingCloud]

Once in 50 years flood seems to be once every couple of years in a lot of places! I'd talk to a long term neighbour than rely on council.

[John the builder]

1 in 50 flood is a flood of a certain intensity and level that is expected it does not mean a flood only very 50 years. The consequences are well understood in areas such as river flood plains where surveys can measure likely levels. A 1 in 50 flood generates a certain level of flood. More intense events could happen and depending on area topography raise to higher levels. Most urban areas are subject to sheet flooding that is relatively shallow runoff but has to be allowed to flow or will cause problems for you or someone else is it backs up.

[Ivan McIntosh]

1 in 50 flood is a flood of a certain intensity and level that is expected it does not mean a flood only very 50 years. The consequences are well understood in areas such as river flood plains where surveys can measure likely levels. A 1 in 50 flood generates a certain level of flood. More intense events could happen and depending on area topography raise to higher levels. Most urban areas are subject to sheet flooding that is relatively shallow runoff but has to be allowed to flow or will cause problems for you or someone else is it backs up.

One problem, applicable to the property I had, was that the flood probability was calculated some time ago, and intensification of houses in the area meant a lot more runoff as grass is replaced by additional houses and patios/driveways etc. That extra runoff found its way down to my cul de sac, and through my property was ultimately the only escape if the drains in the cul de sac coulnd't handle it. The water had to get pretty high in the cul de sac to start pouring down my drive, but once it did the flooding was almost certain, the worst being a torrential downpour in a thunderstorm that saw my place flooded less than 20 minutes after the rain started. Taught me a valuable lesson when buying lower lying land....are you the safety valve if the drains fail?

[John the builder]

every house should have a secondary flow path so the surface water can flow around the house and not through it