Prices might well go up but don't get too excited. The govt is in no shape to be funding rebuild efforts with the current account deficit they way it is. So let's ponder what their options will be:
1/ Increase income taxes 2/ Increased inflation forcing RBA to interest rates similar to late 80s/early 90s 3/ Non tax deductable Flood Levies introduced on all properties 4/ Increase stamp duty on mortgages 5/ Increase land tax on all income producing properties 6/ Increased insurance premiums - house/cars/boats
So, seems which ever way they go, we will all pay for it, hopefully spread evenly between non home owners and home owners alike.
