Heard the PM at the Christchurch rebuild/demolition announcement say 5,000 properties were in the "red zone" and consequently toast. About half a billion is the government's cost to offer these home owners a way out. The affected areas are now available to view at landcheck. (on pdf annoyingly - if it's headed "zone map" is should bloody well have a map FFS.)
For people who owned property with insurance in the residential red zones on 3 September 2010 there will be two options:
* the Crown makes an offer of purchase for the entire property at current rating value (less any built property insurance payments already made), and assumes all the insurance claims other than contents; or
* the Crown makes an offer of purchase for the land only, and homeowners can continue to deal with their own insurer about their homes.
The government hopes to be able to come back to residents in the red zone with an offer of purchase by the end of August. Residents will then have 9 months to consider the offer.
Danyl of Dim Post: "Most of that $635 Million will pay off mortgages owed to Australian banks. I suspect much of the remaining equity will also cross the Tasman"
Amazing too that Mr Magoo's South Canterbury Finance will actually cost the government more than the 5,000 homes being written off. A suburb or two's worth.