Land grab continues, people tricked into selling $350,000 home to Govt for $81,500

I reckon these people are IDIOTS. Can you believe they sold their house, on a full sized section of land, to the GOVT for just $81,000 ! Surely they could have sold it for WAY more than that on the private market ! Even Earthquake damaged “insurance write-off” houses and land sell for double, and more, of that amount.

They had inadvertantly allowed their insurance policy to lapse. After the less damaging, September 2010 Earthquake, insurance companies put a freeze on new policies in Christchurch. Then came the devastating February 2011 EQ. As “uninsured” the Government’s ‘voluntery’ offer to buy their “Red Zone” house was half the land value. Before the EQs the place was probably worth a total of $350,000 (house and land together).

They have accepted the government offer and sold the land to the government (note “Red Zone” is a purely abitrary government invention. With a stroke of the government’s pen, the land could be un-red zoned tomorrow, and the government can then sell it for 4 times the price they bought it for !

They say they had to move out because the place was draughty and leaking. I say that $10,000 of repairs can fix up an awful lot of draughts and leaks ! Anyway they chose to buy a complete, another house, (curiously also an EQ write-off, but they chose one in Bexley, in an area subject to flooding, even before the earthquakes, and doubly subject to flooding now).

Sorry but I have little sympathy for these people, for considerably less than the cost of buying another entire EQ write-off house and land, they could simply have done essential repairs to their existing house (and continued to live in an area with less danger of flooding, every time we get a decent dump of rain).

Note the auction below is NOT for the land, which they have already sold to the governemnt, it’s just for a brick and tile house (so very little value in salvagable materials there, but you could get the door and windows and internal fittings from the bathroom and kitchen etc). Going by the only picture that accompanies the article, it looks like quite a new house. (UPDATED, see bottom of this article)

It’s worth noting that many of the “Red Zone” houses that were sold to the government, were entirely undamaged or had only minor cosmetic damage.

Something around 5,000 houses across several neighbouring NE Christchurch suburbs, have been sold to the GOVT and demolished, leaving the land as open parkland, with scattered trees and shrubs. Less than 140 homes have been retained by their owners. Arguably, those few houses left, in private ownership, in the “residential Red Zone”, could well be worth (to some people) a lot MORE than they were previously. With all the city services of sealed road, water, electricity and telecommunications (which agencies are not allowed to just withdraw) and yet 97% of houses having been removed, means that people with only a residential sized lot to garden and care for around their house, have access to what has become a huge surrounding parkland. The Govt are required to maintain this land at their expense.

I believe that people accepting Red Zone offers by the Govt of half of land value, have been cheated out of their land. They have been absolute suckers. Golly even in the old days, people would get some beads and blankets and Bibles for their land ! I am very sure that history will look back on this sort of thing as just utter land-grab-thefts by the government.

Here is a link to the Christchurch Press newspaper’s website.

http://www.stuff.co.nz/national/10151597/1-reserve-for-red-zone-house-auction

UPDATED 26 June 2014… The house (well the right to strip it for salvage) ultimately sold at auction for $10,500. Plus extra money was donated to the elderly couple. Here’s a link to the NZHerald’s article.

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11282433

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