Hurricanes Harvey and Irma damaged nearly 1.8 million homes, with uninsured flood losses of nearly $57 billion, per real estate data firm CoreLogic, Inc. Despite concerns that the Houston area may lose value over time due to climate concerns, many investors are offering storm-affected homeowners the option to sell their home, in some cases for 40 cents on the dollar. Investors state this is an effort to help rebuild.
Some worry that homeowners may not recognize the big picture for such a momentous decision, nor potential alternatives available. Bloomberg reports both sides are assessing risk --- homeowners considering best home value, while rising financing, labor, and material costs keep investors wary.
It’s axiomatic on Wall Street that the time to buy is when fear overtakes greed—when blood (or, in this case, water) is in the streets. Now some are eyeing the billions of dollars in hurricane-ravaged property in Texas and Florida and deciding it may be the time to take out their checkbooks. Investors such as Schild figure they can buy low, either fix up and flip the houses or rent them out for several years, and unload them later, doubling their money or more.
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