Climate change makes risk unpredictable; risk makes insurance unaffordable or unavailable; no insurance makes mortgages unavailable; without mortgages property values crash
Why is it without mortgages property values crash? Is it because sellers are forced to sell to only people who can pay cash? I suppose that makes sense. And of course those won’t be “people”, those will be banks and investment companies, looking to rent the property out to tenants. So more large chunks of money are siphoned away from the middle class.
If a property is at risk and uninsurable, banks won’t provide good terms for a mortgage, because ultimately the property is at risk. This means they’re either going to lower the mortgage, or increase the rates. This means less money is available to purchase the property, which forces a lower price on the seller (because nobody else could buy, unless they use cash, but why would someone pay cash on an at-risk property?).
Right, but the quote from the article specifically says mortgages will be unavailable. So forget about insurance and mortgages. (If we follow that line of thinking.) so I assume that means only cash buyers.
Why is it without mortgages property values crash? Is it because sellers are forced to sell to only people who can pay cash? I suppose that makes sense. And of course those won’t be “people”, those will be banks and investment companies, looking to rent the property out to tenants. So more large chunks of money are siphoned away from the middle class.
If a property is at risk and uninsurable, banks won’t provide good terms for a mortgage, because ultimately the property is at risk. This means they’re either going to lower the mortgage, or increase the rates. This means less money is available to purchase the property, which forces a lower price on the seller (because nobody else could buy, unless they use cash, but why would someone pay cash on an at-risk property?).
Right, but the quote from the article specifically says mortgages will be unavailable. So forget about insurance and mortgages. (If we follow that line of thinking.) so I assume that means only cash buyers.