38 min
These “Subtle Risks” Could Have Astronomical Impacts on Real Estate Expenses w/John Sheffield On The Market
-
- Investing
Owning real estate could get expensive—yes, even more expensive than it already is today. Insurance prices, property taxes, maintenance costs, and more are going through the roof, and there isn’t much stopping these costs from jumping even more. What’s accelerating the rise in these upkeep costs? Hotter summers, colder winters, and more natural disasters. Growing climate risk is making real estate deals harder and harder to pencil, and even some safer areas to invest are seeing sizable pricing upticks.
John Sheffield from ICE brings us the latest data on the financial impacts of climate risk in this episode. When we say “climate risk,” we know what you’re thinking: hurricanes, tornadoes, and wildfires. But that doesn’t even scratch the surface of what’s causing real estate expenses to jump. Areas of the US with once-cool summers are now experiencing record-breaking heat, increasing hail damage is denting roofs and breaking windows, and flooding has become the norm. These subtle climate effects have huge implications for your bottom line. So, what should you do to secure the profit you’re looking for on your next property?
John hits on the expenses that are rising the most, the areas where home upkeep costs could almost mirror monthly mortgage payments, and what investors must do when underwriting their next deal to account for this massive jump in expenses.
In This Episode We Cover
The actual cost of climate risk and the expenses that are seeing the most significant pricing surges
Why even areas without hurricanes, fires, or tornadoes are still at significant risk
Property tax problems and underfunded local governments that could quickly raise taxes
Insurance underpricing that could lead to even more expensive home protection
Areas where home prices could drop as a result of inflated home expenses
Where to find and track climate data so you know where (and where not) to invest
And So Much More!
Links from the Show
Find an Agent
Find a Lender
BiggerPockets Forums
BiggerPockets Agent
BiggerPockets Bootcamps
Join BiggerPockets for FREE
On The Market
Join the Future of Real Estate Investing with Fundrise
Connect with Other Investors in the “On The Market” Forums
Subscribe to The “On The Market” YouTube Channel
Dave's BiggerPockets Profile
Dave's Instagram
Property Manager Finder
BiggerPockets Real Estate 951 - BiggerNews: Why Low Mortgage Rates Can’t Solve Our Affordability Crisis
BiggerPockets Real Estate 895 - BiggerNews: How Climate is Exploding Insurance, Building, and Investing Costs
Growing Home Insurance Costs Will Destroy Your Cash Flow—Here’s What You Can Do About It
Jump to topic:
(00:00) Intro
(01:31) Costly Climate Risk
(07:56) A Huge Insurance Problem
(14:31) Property Taxes and Utility Costs
(20:38) Maintenance Inflation
(22:54) What Investors Must Do
(25:22) Prices Could Drop Here
(30:08) Where to Find Climate Data
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-218
Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com.
Learn more about your ad choices. Visit megaphone.fm/adchoices
Owning real estate could get expensive—yes, even more expensive than it already is today. Insurance prices, property taxes, maintenance costs, and more are going through the roof, and there isn’t much stopping these costs from jumping even more. What’s accelerating the rise in these upkeep costs? Hotter summers, colder winters, and more natural disasters. Growing climate risk is making real estate deals harder and harder to pencil, and even some safer areas to invest are seeing sizable pricing upticks.
John Sheffield from ICE brings us the latest data on the financial impacts of climate risk in this episode. When we say “climate risk,” we know what you’re thinking: hurricanes, tornadoes, and wildfires. But that doesn’t even scratch the surface of what’s causing real estate expenses to jump. Areas of the US with once-cool summers are now experiencing record-breaking heat, increasing hail damage is denting roofs and breaking windows, and flooding has become the norm. These subtle climate effects have huge implications for your bottom line. So, what should you do to secure the profit you’re looking for on your next property?
John hits on the expenses that are rising the most, the areas where home upkeep costs could almost mirror monthly mortgage payments, and what investors must do when underwriting their next deal to account for this massive jump in expenses.
In This Episode We Cover
The actual cost of climate risk and the expenses that are seeing the most significant pricing surges
Why even areas without hurricanes, fires, or tornadoes are still at significant risk
Property tax problems and underfunded local governments that could quickly raise taxes
Insurance underpricing that could lead to even more expensive home protection
Areas where home prices could drop as a result of inflated home expenses
Where to find and track climate data so you know where (and where not) to invest
And So Much More!
Links from the Show
Find an Agent
Find a Lender
BiggerPockets Forums
BiggerPockets Agent
BiggerPockets Bootcamps
Join BiggerPockets for FREE
On The Market
Join the Future of Real Estate Investing with Fundrise
Connect with Other Investors in the “On The Market” Forums
Subscribe to The “On The Market” YouTube Channel
Dave's BiggerPockets Profile
Dave's Instagram
Property Manager Finder
BiggerPockets Real Estate 951 - BiggerNews: Why Low Mortgage Rates Can’t Solve Our Affordability Crisis
BiggerPockets Real Estate 895 - BiggerNews: How Climate is Exploding Insurance, Building, and Investing Costs
Growing Home Insurance Costs Will Destroy Your Cash Flow—Here’s What You Can Do About It
Jump to topic:
(00:00) Intro
(01:31) Costly Climate Risk
(07:56) A Huge Insurance Problem
(14:31) Property Taxes and Utility Costs
(20:38) Maintenance Inflation
(22:54) What Investors Must Do
(25:22) Prices Could Drop Here
(30:08) Where to Find Climate Data
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-218
Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com.
Learn more about your ad choices. Visit megaphone.fm/adchoices
38 min