Hurricane Florence will wreak havoc on the neighborhoods hit hard by flooding and wind damage. Natural disasters such as wildfires, earthquakes, floods, volcanoes and even hurricanes destroy and consume as they move or roll across the landscape. These occurrences displace people, destroy property and lately are adding to the already impacted real estate market by lowering already tight inventory across the affected areas.
The lives of people in these areas is disrupted, employment is hindered, income drops, and bills go unpaid for lengthy amounts of time. These disasters lead to higher levels of default on mortgages in the affected areas. For example, when a trio of hurricanes hit last year, Houston and Cape Coral experience tripled delinquency rates on mortgages while San Juan quadrupled. In Santa Rosa, CA, the Tubbs wildfire caused delinquency rates to spike by 50 percent.
Dave Ramsey talks about getting yourself out of debt by using his strategies. He talks about his seven baby steps. Step one talks about saving $1,000 as an emergency fund and Step three talks about saving three to six months of expenses for emergencies. If you live in an area where natural disasters are more common, it might be a good strategy to follow his advice. That way if something happens to your home you can at least make mortgage payments until the insurance company finishes your claim. Most insurance companies will put an extra effort in neighborhoods where disaster has struck to help lessen stress and get claims paid out faster.
Another pressure in areas where disasters hit is the demand that is put on rental property in the affected areas. Single-family rents in these areas tend to rise at a double-digit pace. Lots of competition in the market often results in higher prices as we have learned through economics.
Make a pact with yourself today to get yourself set up for success by putting aside an emergency fund so you can protect yourself and your property against the next natural disaster that will hit not might hit in your area.
And remember if you, a friend or family member need assistance with selling or buying a home I can help. Referrals and people needing relocation assistance are welcome! Search Single Family homes in Greenville. Search Condos and Townhomes in Greenville.