Bushfires 2019/2020!

[p--and--t]

A rebuild always costs more than the resale value of the building

"resale value of the building" - what does that mean unless you have a transportable?

The majority of property sales are land and improvements (building etc). A rebuild would rarely be more than the resale value of the land and non-transportable improvements.

 

[Flying mermaid]

"resale value of the building" - what does that mean unless you have a transportable?

The majority of sales are land and improvements (building etc). A rebuild would very rarely be more than the resale value of the land and non-transportable improvements.

Depends on the suburb and state of the house. A beaten up house in a good suburb could be worth a lot more after a rebuild. All quite variable.

would be a real pain though - having to find somewhere to live while it was being rebuilt, on top of losing all the contents - quite heart breaking

 

[Pushka]

A rebuild always costs more than the resale value of the building

A million to rebuild our place. We sold for a ”bit” more than that just recently. It picked up two of three properties.

 

[Quickstatus]

Value of property = unimproved land value plus improvements (buildings and other improvements).
The market (or for these purposes resale) value may be more of less than the value. The rebuild cost is almost always more than the value or market value of the improvements.
A quantity surveyor can give an estimation of both

 

[p--and--t]

Depends on the suburb and state of the house. A beaten up house in a good suburb could be worth a lot more after a rebuild. All quite variable.

I don't have a problem with that statement.

I was trying to clarify the original statement that a rebuild (cost of the rebuild) would be more than the value of the original "resale value of the building". Unless it is a transportable you can't buy a "building" without the land.

In a significant number of cases the land would be worth more than the inferred value of the building (particularly if it was dilapidated).

 

[p--and--t]

Value of property = unimproved land value plus improvements (buildings and other improvements). The market (or for these purposes resale) value may be more of less than the value. The rebuild cost is almost always more than the value or market value of the improvements.

Agreed.

 

[Quickstatus]

A million to rebuild our place. We sold for a ”bit” more than that just recently. It picked up two of three properties.

Not the same. Once the rebuild is done, the market value of the improvements changes. Sometimes it can be more , sometimes less. Often it is less because the owner overcapitalised

 

[Quickstatus]

Hot day tomorrow cooler on weekend

also worries about snowy hydro and transgrid transmission lines.

 

[Pushka]

Cool change just hit Adelaide. I just hope that KI fires don’t explode with the wind change.

 

[Quickstatus]

Cool change just hit Adelaide. I just hope that KI fires don’t explode with the wind change.

It’s not looking good for KI. A new Emergency warning currently in play

 

[Julesmac]

I am not sure if this is still the case but after one of the big fire events, insurance companies were penalising those who had underinsured. For example if the house was insured for $100K and the insurance assessor deemed it to be worth 20% more, they would only pay out $80K (80% of the total insured). Likewise there were instances of companies saying that a home was overinsured and refusing to pay out the higher amount.

That's not a new thing or related to bushfires. It's called an averaging condition. If your house is 50% underinsured and you lose the lot, you won't get back 100% you'll only get 50%. We had a body corporate management company and a couple of times had properties badly damaged by fire. Fortunately our standard & unwavering requirement was an insurance valuation carried out every 3 years by a licensed surveyor & cover increased accordingly. Of course you only discover how good your insurance policy is when you have a claim - and then discover what it is you aren't covered for!

 

[Julesmac]

But they can’t tell the quality of changes though nor fittings.

I recall a thread on AFF some years ago, a wise soul recommending that you spend just half an hour taking pics on your phone of every room, and its contents. A video as well, and photos of jewellery & other specified items. Email it to yourself and it's sitting up in the cloud. I lost an expensive diamond ring inherited from Mum. I was asked to send pictorial evidence of it- well I don't know how many of you would be able to lay your hands on a photo where your mother's engagement ring is clearly displayed. Fortunately and very unusually for me I was able to locate a recent-ish valuation.

 

[amaroo]

However, that is how the average will interpret it.

That's seriously undermining the average .... clearly the advice does not state what you indicated.

 

[amaroo]

Insurance will only payout the deemed replacement value of a house. The deemed value is somewhere within a nominated range, unless you have stipulated unusual conditions. If you ask your insurer they will tell you the nominated range.

Better to be overinsured than under ..... but heaven help those when their banks step in to help themselves first.

 

[Flying mermaid]

I think the short answer is you never want to have to call on your insurance policy - insurers will screw you whenever they can.

I am going round tomorrow to take photos of my bathrooms and fittings and kitchen etc. I remember when a friend lost her house in the 2003 fires and she got into endless arguments as to the quality of the fittings. You can pay $5 for a tap and faucet set or $2,000

 

[get me outta here]

Past performance does not indicate future blah blah blah.

That's seriously undermining the average .... clearly the advice does not state what you indicated.

 

[get me outta here]

Meanwhile the forestry department has piles of dead rubbish they have not cleared in other South Coast areas. Residents are very unhappy about that.

Another interesting article about a fellow that AFFers in the ACT might know of.

How a billionaire's elaborate plan to protect his equestrian centre helped save hundreds of homes, animals and lives from an out-of-control blaze

 

[Pushka]

I think the short answer is you never want to have to call on your insurance policy - insurers will screw you whenever they can.

I am going round tomorrow to take photos of my bathrooms and fittings and kitchen etc. I remember when a friend lost her house in the 2003 fires and she got into endless arguments as to the quality of the fittings. You can pay $5 for a tap and faucet set or $2,000

I’ve called on ours a few times and was rather surprised and pleased at the outcome. One was for a fire in the bedroom and they replaced the carpet - all of it and it was a very large space. Then repainted it all and dry cleaned all the clothing. Another was for water inundation through the ceiling. Fixed the ceiling, repainted it then paid for recarpeting it although we ended up polishing the floorboards and were allowed to keep the difference from their carpet person. Most recent was hail damage to roof and carport. They simply gave us their cash valuation which was quite generous and we didn’t repair the holes in the carport until we were ready to sell as they were cosmetic only. Maybe they could tell we were over insured?

@Flying mermaid - it seems that your warning about it being too soon to bring back tourists to KI was spot on. Apparently last night KI was awful and horrific tales told this morning of the fire damage to stock and their reactions. Many people evacuated to sleep in their cars or on the oval near Kingscote. Thankfully no further numpty has dared declare they are climate change refugees. They are much too proud for that.
The bees are also very much at risk now.

 

[Pushka]

Past performance does not indicate future blah blah blah.

And the most reliable predictor of future behaviour is past behaviour. See, there is one of those for every situation.

 

[Quickstatus]

Past performance does not indicate future blah blah blah.

Small typo - just cross out “not”