Knysna Fires Aftermath: BURNED DOWN HOMES FOR SALE - WORTH IT ??

[Honey Badger]

The Knysna Fires have died down but now I am seeing several burned down homes being advertised for sale on Property24. Pretty sad sight. Some are just the plot with rubble removed, others with building remains on it.

Here's an example at 32 McClelland Street, Knysna Heights (https://www.property24.com/for-sale/...7485/105420591) advertised for R1,400,000. 'Before' and 'After' pics attached.

Typical advert text:
"You could live in the 2 bed, 1 bath cottage while you re-build as it was untouched by the fire. Situated in an elevated position with views of the Knysna Lagoon and mountains. Large erf, fully fenced with electric gate. Paved driveways established. This is your opportunity to get on the property ladder."

Details:
Erf size 1108 m2
House was 207 m2 but damaged beyond repair but engineers say foundation can be rebuilt upon.
Cottage is 64 m2 (2 bedroom garden cottage with full bathroom, open plan lounge and kitchen, wooden deck)

My question:
Do you think this could be a worthwhile investment / (huge?) opportunity in Knysna?
PS: What I know about building costs etc is dangerous.

[Peter1949]

I hope that these folks at least got insurance pay-outs??
Although on checking my policy I see damage cause by veld fires are EXCLUDED unless specifically covered and some or other "standard" regulations are complied with. I guess this MAY have something to do with minimum distance from "Veld" to buildings?
Anyone know about this?

I would say if you have the means to re-build (financially) then it would be worth it but not sure of property prices there.
On the face of it - probably the right price for a stand with view(s) and especially if rubble already cleared.

Since many of those were probably retirement homes, the heart bleeds for those now being forced to sell.
The scale of the disaster is just so great.

[Honey Badger]

Anyone got an idea of building costs in Western Cape - more specifically here in Knysna? Thanks

[Mr.G]

I think we will be shocked to know how few people have home owners insurance,especially retired persons with paid off homes

[Frostbite]

I think we will be shocked to know how few people have home owners insurance,especially retired persons with paid off homes

Latest I heard is 52% affected by the fires, were uninsured. Eish.

Although, the more people I talk to, I think that figure could be higher. Many people simply just never believed in having insurance, and so we're happy to take the risk.

[JanB]

Anyone got an idea of building costs in Western Cape - more specifically here in Knysna? Thanks

I suspect it should be 15-20% more than what you are used to. It is a small town, so materials are slightly more expensive, but you also need to build things like cavity walls for moisture. Wooden window frames don't last, better insulation for longer winter, etc.

[Mr.G]

Latest I heard is 52% affected by the fires, were uninsured. Eish.

Although, the more people I talk to, I think that figure could be higher. Many people simply just never believed in having insurance, and so we're happy to take the risk.

Damn,thats even higher than i suspected.Shocking..And you would think people would learn from the Cape St francis fires where loads of people were also not insured

[Frostbite]

Damn,thats even higher than i suspected.Shocking..And you would think people would learn from the Cape St francis fires where loads of people were also not insured

Ya it's quite scary, and heartbreaking. I think the saddest part is that it's the cheapest insurance to take out.. relatively speaking.

Still plenty of burnt homes here which are untouched since the fires.

[jelo]

It's a buyers market. Sad to say, plenty of people will take any reasonable offer.

I think a lot of people will now think seriously about trees on their property as well as the roof materials used.

[Sawdust]

Re-building with the current water shortage must also be a huge problem.

[jelo]

What amuses me was that jeweller fellow on Carte Blanche that lost "several million Rands worth of stock" yet had no insurance

kry vir jou, pappie, kry vir jou

No sympathy from this side.

[Caracal]

What amuses me was that jeweller fellow on Carte Blanche that lost "several million Rands worth of stock" yet had no insurance

kry vir jou, pappie, kry vir jou

No sympathy from this side.

Harsh but true.

Household insurance, be it structural or contents, as stated already, is one of the cheapest in relative terms.

[Disco-Deon]

WRT Pricing - no idea.

Buy the place, move into the cottage, rebuild the house cash over a few years and you have an AWESOME home...

Pretty much what my father did.
Bought property with a bond and built a double garage and servant's quarters.
We moved into that and stayed there for quite a while building the house with money from the house he sold and cash bit by bit.

[jelo]

Harsh but true.

Household insurance, be it structural or contents, as stated already, is one of the cheapest in relative terms.

sure, I have sympathy if you're a pensioner or poor, but that guy wasn't

[Elders]

Insurance have always been a strange animal .... "will never happen to me" .... and the dreaded - "insured value was not kept market related" ....

Of those insured I am sure many dont have sufficient insurance for a rebuild.


As for buying a skeleton and rebuilding it :

- do your homework about previously approved plans ....

- you can buy an existing home in places such as Onrus for less than R 7 000 per square meter, including the plot price ( so the rate per m2 is actually LOW when buying an existing home at the sea)

- take the cost of the "plot", then add the costs to clean the erf, get plans approved, then the building costs .... pretty sure this will be almost double of a similar place in Onrus.


Game changes if you are a local and have some experience with building and intend revamping it with local labour .... could be an interesting business option ..

[malana]

Anyone got an idea of building costs in Western Cape - more specifically here in Knysna? Thanks

Talk is that the prices will be inflated for at least the next two to three years due to shortage in the area of builders and supplies. I think if the idea is to rebuild it use the cottage for a few years and then build when the prices come down to realistic measures. Might take a few years. I think any historical building cost prices in the Souhern Cape would be useless at this stage. Also remember that Plettenberg Bay also had a lot of damage which makes it even worst.

[malana]

Talk is that the prices will be inflated for at least the next two to three years due to shortage in the area of builders and supplies. I think if the idea is to rebuild it use the cottage for a few years and then build when the prices come down to realistic measures. Might take a few years. I think any historical building cost prices in the Souhern Cape would be useless at this stage. Also remember that Plettenberg Bay also had a lot of damage which makes it even worst.

\

Sorry also very important at he back of Knysna Height they are busy with a Low Cost Housing developemenst (RDP type stuff) so that area is also a bit of a NO NO at this stage. Just spoke to one of the locals. People actually want to get rid of their property in that neighbourhood.

[Caracal]

sure, I have sympathy if you're a pensioner or poor, but that guy wasn't

Im with you on that

[PaulWW]

What amuses me was that jeweller fellow on Carte Blanche that lost "several million Rands worth of stock" yet had no insurance

kry vir jou, pappie, kry vir jou

No sympathy from this side.

When was this on Carte Blanche jelo?

[ZuluCowboy]

I would just buy and then remove the rubble etc.... in 10 years you are going to say... dammit, could have got 5 plots for R1 000 000 10 years ago.