Eddie called it. Christchurch announcement is today. There are very high hopes. Points to watch: how many in the ‘don’t know’ category & are payouts at pre-quake market values? Notable release is this afternoon just before Key leaves. Makes it difficult to get reaction from residents in time for TV news and follow-up with Key.
It’s been so much fun watching the government’s slow strip show over this for the past few weeks. Can only imagine what it must have been like viewed from a munted house in Bexley.
Around 5,000 homes will have the option to be bought out by the Crown. Then Crown pursues payment from EQC and insurers. Pretty obvious solution. The question is the valuations used. Other question is why such an obvious solution has taken so long.
Clue to payouts is that the Government has budgeted $1.5 billion. $300,000 per house. Seems a bit low. Pre-quake market median for Christchurch was $349,000. A lot of people might have to take it as close enough. Especially if the rest of the street does. Maybe that’s why offer will stand for 9 months. Long enough to break the holdouts.
Lot more than these 5,000 houses in limbo though. Every house will get categorised. Like I suggested. But Brownlee seems to suggest there will be a ‘don’t know’ category. How many will be in it?
Will a package for those on the margin be announced? Brownlee promised no-one would be worse off and equity in houses would be protected. Includes falls in values of houses that survive but are bordering abandoned areas. Getting that right will be tricky.
Where will the 5,000 households go? Will plans for new suburbs to announced?
Just waffling and excuse-making so far.
Now the meat. 5100 houses in the ‘red area’. Two options to be bought out – sell land and house, or sell land and get house payout from insurers, advantageous if insured for replacement. Only for insured houses. 8 weeks until options can be taken. Rateable values will be used.
There another 10,000 houses in the ‘don’t know’ orange zone. Also a white zone with no info. Don’t know how many houses.
Go to landcheck.org.nz to find out which zone you’re in. Site built in last 3 days. Sounds like they only did this announcement at the last minute under pressure.
Gerry still hasn’t a plan for uninsured. Unbelievable.