The rating agency Moody & # 39; s expects natural disasters in Australia to worsen and cause mortgages
The more intense forest fires and storms can ensure that YOU do not get a home loan – and that home prices fall
- Rating agency Moody & # 39; s Investors Service has warned of natural disasters
- It predicted that this would lead to an increase in loan repayments
- House prices are also threatened due to more extreme weather conditions
A leading global rating agency has warned more intense forest fires and storms will make it harder for Australians to get a home loan.
Moody's Investors Service has also issued a warning about falling house prices due to natural disasters.
& # 39; The risks associated with natural disasters for home loans and house prices in Australia are increasing due to the increasing frequency of such events & # 39 ;, it said Monday in a research paper.
A leading global credit rating agency has warned more intense forest fires and storms will make it harder for Australians to get a home loan (pictured is serious tidal damage at Collaroy on Sydney's northern beaches in June 2016)
Moody & # 39; s also warned that the increasing frequency of natural disasters would increase the number of mortgage debts, with borrowers 30 days or more behind their repayments.
& # 39; The frequency of natural disasters is increasing & # 39 ;, he said.
& # 39; Natural disasters can disrupt economic activity and thus reduce borrowers' income, which in turn can lead to overdue claims and losses on mortgages.
& # 39; Natural disasters can also lead to significantly lower property values in affected areas. & # 39;
Moody & # 39; s said that the effects of climate change would probably lead to more extreme weather conditions.
It cited data from the Bureau of Meteorology and the Commonwealth Scientific and Industrial Research Organization data that showed a one-degree Celsius rise in average Australian temperatures since 1910.
Moody's Investors Service has also issued a warning about falling house prices due to natural disasters. It also warned of more frequent forest fires due to rising temperatures (this month the fires are at Angourie northeast of Grafton in northern New South Wales)
Forest fires would therefore become a more frequent danger.
& # 39; There has been a long-term increase in extreme firefighting and in the duration of the burning season, & # 39; said Moody & # 39; s.
Earning a degree in ocean currents was expected to contribute to longer and more frequent heat waves at sea.
Dry weather deteriorates with 99 percent of New South Wales in drought.
& # 39; Rainfall has fallen in southeast and southwestern Australia in recent decades, but has increased in the Northern Territory & Moody & # 39; s.
Floods and cyclones are the most common natural disaster in Queensland. Cyclone Debbie, in March and April 2017, was particularly bad and hit homes on Airlie Beach in the north of the state
& # 39; In addition, droughts in some areas of Australia are likely to increase due to higher temperatures and lower rainfall. & # 39;
Floods and cyclones are the most common natural disaster in Queensland.
Cyclone Debbie, in March and April 2017, was particularly bad and hit homes in Airlie Beach in the north of the state.
It ensured that overdue mortgages ran from two percent to 2.3 percent.
& # 39; Cyclone Debbie was one of the biggest natural disasters in Australia in the last 10 years and caused major damage to public infrastructure, businesses and private property across a vast area of Queensland, but overdue claims increased only moderately, & # 39 ; said Moody & # 39; s.
Despite the increasing risk of natural disasters, Moody & # 39; s said that the risk of mortgage crime would probably be moderate, provided insurers were not excessively exposed to one state, such as Queensland.
Forest fires, floods and storms are more likely to have NSW.
Forest fires and floods are more common in Victoria, while cyclones are more common in Western Australia.
It cited data from the Bureau of Meteorology and the Commonwealth Scientific and Industrial Research Organization data that showed a rise in average Australian temperatures by one degree Celsius since 1910 and produced a graph that reflects the changes since 1970
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