Owning Real Estate is About to Get Much More Expensive…

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. ~~~~ Join BiggerPockets for FREE 👇 https://www.biggerpockets.com/signup?... ~~~~ Listen to the “On The Market” Podcast Wherever You Listen to Podcasts: https://link.chtbl.com/OTM ~~~~ Join the Future of Real Estate Investing with Fundrise: https://www.fundrise.com/bpmarket ~~~~ Find an Investor-Friendly Agent in Your Area: http://biggerpockets.com/agentmatch ~~~~ Find Investor-Friendly Lenders: http://biggerpockets.com/findlenders ~~~~ Property Manager Finder: https://biggerpockets.com/findapm ~~~~ Hear Our Recent Episode with ICE’s Andy Walden: https://www.biggerpockets.com/blog/re... ~~~~ BiggerNews: How Climate is Exploding Insurance, Building, and Investing Costs: https://www.biggerpockets.com/blog/re... ~~~~ Growing Home Insurance Costs Will Destroy Your Cash Flow—Here’s What You Can Do About It: https://www.biggerpockets.com/blog/gr... ~~~~ Connect with Dave and Our Panel of Expert Guests: Dave Meyer: https://www.biggerpockets.com/users/d... Henry Washington: https://www.biggerpockets.com/users/h... James Dainard: https://www.biggerpockets.com/users/j... Kathy Fettke: https://www.biggerpockets.com/users/k... ~~~~ Follow Dave and Our Guests on Instagram: Dave: @thedatadeli or   / thedatadeli   Henry: @thehenrywashington or   / thehenrywashington   James: @jdainflips or   / jdainflips   Kathy: @kathyfettke or   / kathyfettke   BiggerPockets: @biggerpockets or   / biggerpockets   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