Australia’s housing market is under pressure. With limited supply and growing demand, many buyers are finding themselves in bidding wars, forced to move quickly to secure a home. For first homebuyers especially, the excitement of finally entering the market can make it tempting to skip due diligence steps in favour of speed.
But as two recent stories from the NSW coastline show, what seems like a smart purchase today could turn into a financial burden tomorrow if climate-related risks are overlooked.
Coastal homes at risk: two communities sound the alarm
In Port Macquarie, the local council has formally called on the New South Wales Government to declare a state of emergency as worsening coastal erosion threatens homes and infrastructure. A combination of heavy rainfall and intense storms, especially ex-Tropical Cyclone Alfred, has accelerated the rate at which the coastline is retreating. Seawalls are being damaged, public access points have been closed, and residents are seeing the ocean creep ever closer to their properties. ¹
Along New South Wales’s south coast, Tathra residents are living in fear after a powerful storm surge earlier this year carved away several metres of sand beneath beachfront homes. Some properties were inundated, others left on the verge of collapse. “We’re just waiting for the houses to fall in,” one resident said. ² These are not isolated events, and they’re becoming more frequent, and more severe.
The climate risks buyers can’t afford to ignore
It’s easy to assume that climate change is a long-term issue, something to worry about in decades. But for thousands of Australian homeowners, it’s already a reality. And if your property is exposed to risks like flooding, bushfire, or coastal erosion, it could affect not just your safety but also your insurance premiums, repair costs, and future property value.
Even if a home seems unaffected right now, that doesn’t guarantee its long-term security. A low-lying coastal home, for example, might be stable today, but in five or ten years, it could become difficult to insure or sell. In an era where buyers are becoming more climate-conscious, properties with known risks may attract lower offers or take longer to move on the market.
Due diligence is more important than ever
In the rush to secure a home, due diligence is often one of the first things buyers cut back on. But understanding a property’s climate exposure is just as important as knowing its history, structure, and location.
Whether you’re purchasing your first home or adding to your investment portfolio, it’s critical to ask your conveyancer or lawyer to check for climate-related issues, and to use tools that provide visibility into future risks.
One of the simplest and most valuable resources is the Groundsure ClimateIndex Report, available via InfoTrackGO. This report assesses a property’s exposure to climate threats over the next 30 years, including flood, coastal erosion and bushfire risk. It translates complex environmental data into a clear, easy-to-read format so you can make informed decisions before you buy.
A smart homebuyer is a future-ready one
Buying a home is one of the biggest financial decisions you’ll ever make. Don’t let urgency or competition force you into a purchase that might carry hidden risks. Taking the time to understand a property’s climate exposure now could save you significant cost and stress down the track, and ensure your home retains its value for years to come.
Sources:
¹ Port Macquarie News: Council calls for state of emergency as coastal erosion worsens
² About Regional: “Waiting for the houses to fall in”: Homes inundated after storm surge erosion on Far South Coast
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