Episode #218

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.

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Growing Home Insurance Costs Will Destroy Your Cash Flow—Here’s What You Can Do About It:
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Show notes at: https://link.chtbl.com/OTM


00:00 Intro

01:31 Costly Climate Risk

07:40 A Huge Insurance Problem

14:15 Property Taxes and Utility Costs

20:23 Maintenance Inflation

22:38 What Investors Must Do

24:47 Prices Could Drop Here

29:33 Where to Find Climate Data


Did you miss our previous article...
https://trendinginrealestate.com/where-to-buy/-tarot-reading-you-need-to-hear-this-you-will-be-surprised-if-your-name-starts-with-the-letters