Post fire rebuilding

[Mandelon]

So there’s hundreds if not thousands of structures burned down. I’m thinking about all the consequences.

The County will have to reduce your property taxes. They will likely lose a ton of income.

The city will take years to work though all the building permits. They will probably have new rules to follow.

Will the county be assessing people on the value of their new homes? I would be surprised if they let you keep your old assessed value.

Construction loans and new mortgages will have higher rates than what most folks paid before the fire. That’s gonna suck.

For those lucky people who did not lose their homes life is going to be a challenge. No stores, no school, construction cleanup crews, dust, noise and traffic congestion will be part of their lives.

I imagine many families are underinsured. The worst may be over but there’s a long road ahead.

Construction costs are gonna be sky high.

 

[Singleton]

Feel bad for those family’s that lost eveything.
Another issue, short term rentals in surrounding areas are going to go up.

 

[oldman]

With the latest news coming out, many don't have fire ins. there may not be any rebuilding.

 

[SOCALCRICKETT]

I was thinking about that today, with the cost of rebuilding, I wonder how many families are just going to pull the plug and move out of state? The last 5 years showed a massive surge in out of state moves and I wonder for how many people will this be the straw that "broke the camels back"

 

[DC-88]

So there’s hundreds if not thousands of structures burned down. I’m thinking about all the consequences.

The County will have to reduce your property taxes. They will likely lose a ton of income.

The city will take years to work though all the building permits. They will probably have new rules to follow.

Will the county be assessing people on the value of their new homes? I would be surprised if they let you keep your old assessed value.

Construction loans and new mortgages will have higher rates than what most folks paid before the fire. That’s gonna suck.

For those lucky people who did not lose their homes life is going to be a challenge. No stores, no school, construction cleanup crews, dust, noise and traffic congestion will be part of their lives.

I imagine many families are underinsured. The worst may be over but there’s a long road ahead.

Construction costs are gonna be sky high.

I think equal square footage and bathroom fixtures the assessed value stays the same after the rebuild. I've been thinking about that today too, historically feeling I'm always over insured as a contractor, plus my current homes both have valid soils geotech pad certs etc so foundation could be utilized. I'd wager to guess a lot of those high value older homes are under insured for what it will really cost to rebuild, although Farmers always makes us way over insure the contents so that may make up some of the difference. It will be a long ordeal like the Oakland hills fire that's for sure .

 

[Sherpa]

now think about how the Paradise fire affected 2 entire towns completely gone.............. and these are folks who don't own 2 or 3 other homes...........

--Sherpa

 

[Bobby V]

This was my neighbors house in 2008. They expedited the permit process. Took about 2 years to rebuild. He keeps the burnt motorcycle next to the driveway as a reminder.

 

[Dunerking]

I was thinking about that today, with the cost of rebuilding, I wonder how many families are just going to pull the plug and move out of state? The last 5 years showed a massive surge in out of state moves and I wonder for how many people will this be the straw that "broke the camels back"

My wife were just talking about the same question if our house burned down here in Agua Dulce we would probably be cashing out and leaving California.
Side note everyone that cares should be blowing up Newscums office about not doing enough with allocating more available water to So.Cal like he could have. It is a bunch of bullshit living with high cost of living and not having the basic necessities like water.

 

[Mr. C]

I also was thinking a little about this.
My feeling is many will say FU California and walk away if they have home loan costing more than the return.
Those with adequate insurance will move out of state while rebuilding (and let ins cover that cost) is in progress and sell right after finished.

Those whose are lucky enough to have the house paid off and have ins will rebuild and stay because Cali is just in their blood

Many more scenarios of course.

Me I am the I have enough to rebuild ins. But would leave this state in a second and look back only for my kids and grandkids still here.

 

[HBCraig]

Honest question. Say my house is completely gone. It was a 2 million dollar house. I rebuild and the county assessment is 3.5 million now. Do I have to pay property tax on the new cost?

 

[Mr. C]

My wife were just talking about the same question if our house burned down here in Agua Dulce we would probably be cashing out and leaving California.
Side note everyone that cares should be blowing up Newscums office about not doing enough with allocating more available water to So.Cal like he could have. It is a bunch of bullshit living with high cost of living and not having the basic necessities like water.

Side question. Acton / Aqua Dulce how close is the fire to you.

 

[530RL]

This biggest issue in the future in these areas is not the cost or complexity of rebuilding, but how one obtains insurance at a reasonable cost.

 

[hallett21]

Honest question. Say my house is completely gone. It was a 2 million dollar house. I rebuild and the county assessment is 3.5 million now. Do I have to pay property tax on the new cost?

You can fight them a little but short answer is yes.

 

[SOCALCRICKETT]

My wife were just talking about the same question if our house burned down here in Agua Dulce we would probably be cashing out and leaving California.
Side note everyone that cares should be blowing up Newscums office about not doing enough with allocating more available water to So.Cal like he could have. It is a bunch of bullshit living with high cost of living and not having the basic necessities like water.

Every place will have its ups and downs, I moved from Southern California to havasu and haven't looked back. I get that havasu is hot in the summer but we do have water close by but don't really face much in the form of natural disasters (fire, flood, earthquake for example.)

I'm not gaining equity like I would if I kept my temecula house but I've noticed a considerable improvement in quality of life, I guess it all depends on where we place value in life.

 

[Outdrive1]

I can’t see any insurance companies insuring those areas going forward. The amount of loss after this fire is going to be staggering.



How is anyone going to find enough skilled trades to rebuild all these houses? Engineers to draw up plans? Materials? What a nightmare.

 

[DC-88]

Honest question. Say my house is completely gone. It was a 2 million dollar house. I rebuild and the county assessment is 3.5 million now. Do I have to pay property tax on the new cost?

We/ I tear down and rebuilt all year long every year for a living . You get to keep your value on existing square footage. Additional footage, decks, garage space etc. is taxed / added on the original "improvements" part of the assessment based on quality level of construction which sucks, but is honestly less than it really costs per sq foot with the factors they use. Land portion of the assessment stays the same.

 

[rrrr]

I'm watching all of this with a sick feeling. I always have empathy for those that face the slapdowns that life metes out, but trying to get a grip on the magnitude of this tragedy is beyond my ability to comprehend.

The individual losses. . .people have truly been stripped of everything they own. Their lives have been irretrievably devastated.

It's making my heart hurt.

 

[Mr. C]

We/ I tear down and rebuilt all year long every year for a living . You get to keep your value on existing square footage. Additional footage, decks, garage space etc. is taxed / added on the original "improvements" part of the assessment based on quality level of construction which sucks, but is honestly less than it really costs per sq foot with the factors they use. Land portion of the assessment stays the same.

No knowledge other then hearing the
“ keep one wall up and ….. “
Obviously these homes can’t do that
But any truth to the keep one wall up???

 

[samsah33]

Not to mention the loss in tax revenue not only from the loss of property, but also from the loss in tax base from people leaving. Not sure of the impact that will have on the entire state, but I have to believe that people bailing will have an adverse impact on the city and probably the county, as well as surrounding businesses... Could this be the beginning of the end?

 

[Mr. C]

I'm watching all of this with a sick feeling. I always have empathy for those that face the slapdowns that life metes out, but trying to get a grip on the magnitude of this tragedy is beyond my ability to comprehend.

The individual losses. . .people have truly been stripped of everything they own. Their lives have been irretrievably devastated.

It's making my heart hurt.

Agree. Just hearing from about my daughters friend who grew up with each other and us babysitting lost their home in the palisades. 2 young kids. And now tonight at least have mom’s house to go to SCV.
I’m older obviously. But at young 30ish. How do you deal with this travesty.
So sad. Not only for them. But everyone going through this night mare.

 

[DC-88]

No knowledge other then hearing the
“ keep one wall up and ….. “
Obviously these homes can’t do that
But any truth to the keep one wall up???

At the beach to retain your pre existing "bluff setback " dealing with coastal commission for an example yes, but for the most part It only helps to keep it a remodel permit which has less fees. Con would be your house will pop up as "built in 1952" or whenever it was built back in the day rather than a new build .

 

[Angler]

Honest question. Say my house is completely gone. It was a 2 million dollar house. I rebuild and the county assessment is 3.5 million now. Do I have to pay property tax on the new cost?

From what my agent told me, if you a wall intact, your property taxes would not be reassessed.
Complete burn down, reassessed for the amount the house is worth after the rebuild.

Things could be different now...

 

[4Waters]

I'm watching all of this with a sick feeling. I always have empathy for those that face the slapdowns that life metes out, but trying to get a grip on the magnitude of this tragedy is beyond my ability to comprehend.

The individual losses. . .people have truly been stripped of everything they own. Their lives have been irretrievably devastated.

It's making my heart hurt.

You know what's crazy is I (and probably we) have trouble comprehending the magnitude of the tragedy that a tornado dishes out but you get it because you live it. What I'm trying to say is I/we understand how you feel.

 

[Taboma]

So there’s hundreds if not thousands of structures burned down. I’m thinking about all the consequences.

The County will have to reduce your property taxes. They will likely lose a ton of income.

The city will take years to work though all the building permits. They will probably have new rules to follow.

Will the county be assessing people on the value of their new homes? I would be surprised if they let you keep your old assessed value.

Construction loans and new mortgages will have higher rates than what most folks paid before the fire. That’s gonna suck.

For those lucky people who did not lose their homes life is going to be a challenge. No stores, no school, construction cleanup crews, dust, noise and traffic congestion will be part of their lives.

I imagine many families are underinsured. The worst may be over but there’s a long road ahead.

Construction costs are gonna be sky high.

I can only speak of what we encountered after our loss, post 2007 Witchcreek fire. All permit fees were waved. Permits were expedited and turn-around was reasonable. I imagine they will rely on the newer "Fire" construction codes so won't be re-creating the codes from scratch. During the rebuild process we were initially only taxed on the value of the bare land, until final. Previous accessed value was preserved --- with the exception of any additional interior square footage.
In our case we added a modest amount of square footage and the taxes were raised accordingly, based on the previous assessed value.
San Diego County was actually impressive to work with. Shortly after the fire the setup a local One Stop Shopping of sorts. You enter, go from table to table, various departments provided documentation to assist in your rebuild. They had all your tax records, recorded deeds, basically paper work you might have lost in the fire.

Took us three years because we were evaluating if we wanted to rebuild. It was a time of numerous foreclosures, so that presented an alternative market. But one must consider, if you move and don't rebuild, you lose many additional monies that are available on your insurance that pay for most all the upgraded code, fire and environmental rules. In other words, your insurance will only pay you for what it would cost to rebuild your old house.

After living in a 5th wheel in our driveway for three years, we were damn glad to get a real shower

 

[zhandfull]

Honest question. Say my house is completely gone. It was a 2 million dollar house. I rebuild and the county assessment is 3.5 million now. Do I have to pay property tax on the new cost?

As stated by another member above. If the basic footprint stays the same I don’t believe they will reassess the property value. At least they didn’t with my moms house when it burned down 18 years ago in San Bernardino County.

 

[lbhsbz]

From what my agent told me, if you a wall intact, your property taxes would not be reassessed.
Complete burn down, reassessed for the amount the house is worth after the rebuild.

Things could be different now...

What about a chimney?

 

[4Waters]

What about a chimney?

You can't have those anymore in California

 

[CCXHAL]

My wife were just talking about the same question if our house burned down here in Agua Dulce we would probably be cashing out and leaving California.
Side note everyone that cares should be blowing up Newscums office about not doing enough with allocating more available water to So.Cal like he could have. It is a bunch of bullshit living with high cost of living and not having the basic necessities like water.

Or electricity.

 

[shintoooo]

I was thinking that houses for sale in the surrounding areas will be bought at a premium by a lot of these people that lost their homes in the palisades simply because a lot of them have a lot of money and can do
something like that. It’s going to make a right real estate market a lot tighter soon.

 

[riverroyal]

LA is in the beginning stage of world cup then Olympic construction. It has started.
It will be real tough getting tradesmen. I'm will go political on this topic. Trump will close border or fix it (make it better). 50% or more of residual workers do not have papers. They may not leave, but there will not be more coming.

Rebuilding a lost home will not start for a year. That's boots on the ground.

Basically, it going to be a fucking mess.

 

[Angler]

What about a chimney?

We didn't discuss that.

 

[stillhustlin]

I would imagine with the reduction of housing inventory in Pasadena/Altadena and the pacific palisades existing inventory will appreciate 15-25%. Best case it will be 2-3 years to rebuild and you will have additional costs for demo and new construction that insurance may now cover. These areas are both desirable to many and have people with deep pockets. When you reduce supply and increase the demand price will come up.

 

[lbhsbz]

I was thinking that houses for sale in the surrounding areas will be bought at a premium by a lot of these people that lost their homes in the palisades simply because a lot of them have a lot of money and can do
something like that. It’s going to make a right real estate market a lot tighter soon.

Maybe, or maybe not. How much would you pay to live next to a bunch of burned out lots vs a high end neighborhood? If nobody can get insurance, nobody is going to rebuild and the land will be worthless.

 

[shintoooo]

Maybe, or maybe not. How much would you pay to live next to a bunch of burned out lots vs a high end neighborhood? If nobody can get insurance, nobody is going to rebuild and the land will be worthless.

I was thinking more like Calabasas, Westlake, and other areas that are not affected. Not down the street.

 

[pixrthis]

I was thinking that houses for sale in the surrounding areas will be bought at a premium by a lot of these people that lost their homes in the palisades simply because a lot of them have a lot of money and can do
something like that. It’s going to make a right real estate market a lot tighter soon.

I heard from a realtor that the high cost of insurance is lowering the value of homes because you factor in the price of insurance to the cost of owning a property. He sees insurance costs killing some of his deals.

 

[shintoooo]

I heard from a realtor that the high cost of insurance is lowering the value of homes because you factor in the price of insurance to the cost of owning a property. He sees insurance costs killing some of his deals.

Yes that is definetly a factor. I know my insurance will probably increase by 50% as we’re in a fire zone. Shit I’m lucky if I will even have insurance.

 

[stillhustlin]

Maybe, or maybe not. How much would you pay to live next to a bunch of burned out lots vs a high end neighborhood? If nobody can get insurance, nobody is going to rebuild and the land will be worthless.

In the scale of homes we’ve seen get burned I could see a nation builder come in and buy large qty of lots and expedite the process. As someone who grew up in the San Gabriel Valley there seems to be unlimited demand for real estate here. Altadena has 30 active listing with a 2 month absorption rate. I don’t see this bringing down prices at all.

 

[DarkHorseRacing]

If you go through a disaster of some kind, you can sometimes petition the tax assessor for reduced value as the result.

We did for the blizzard in Arrowhead. It helped that the County and State had declared disaster emergencies.

As that was recent, no idea what happens after the grace period is over.

 

[DarkJuJu]

Speaking with a buddy of mine with 25+ years at APS in Arizona told me they still are dealing with supply issues from covid for transformers. He works commercial and high end new construction and builders/owners are waiting 6+ months for electric regardless of your wallet. I feel very sorry for anyone that lost property poor or wealthy, and my prayers are with everyone in California.

 

[77charger]

Been in construction seen some fire ravished places get rebuilt but it takes time before it happens.

This will takes couple years to get started. Gonna have to deal with insurance companies demo permits and finding contractors who will have the time and crew.

After all that good luck with new homeowners insurance. Last I heard insurance was already bad In ca with them looking for reasons to drop you as a customer or raising rates. They are gonna lose alot of money with these fires and some will be paying for it for a long time.

 

[Melloyellovector]

LA is in the beginning stage of world cup then Olympic construction. It has started.
It will be real tough getting tradesmen. I'm will go political on this topic. Trump will close border or fix it (make it better). 50% or more of residual workers do not have papers. They may not leave, but there will not be more coming.

Rebuilding a lost home will not start for a year. That's boots on the ground.

Basically, it going to be a fucking mess.

borders getting closed doesn’t effect “workers” getting in.
typically “workers“ are paying to cross the border with many options beyond walking into US
Residential work has slowed for many guys and tons of “workers” are waiting to get back to it.

The real problem will be the scammy ”contractors” that take money w little to no work and run

 

[scottchbrite]

I heard from a realtor that the high cost of insurance is lowering the value of homes because you factor in the price of insurance to the cost of owning a property. He sees insurance costs killing some of his deals.

What would be nice is if insurance companies actually rewarded those of us that built fire resistant homes and maintain defensible spaces. I built My house with a standing seam metal roof, Hardie siding, windows that exceeded the minimum, no eves (which I hate), and fire sprinklers in places like the patios and the front porch. All were required by me because I chose to be in the middle of a wildland urban interface (Really high fire danger). Yet, I pay similar to the A hole down the road in a older house who doesn’t do anything or update anything to be safer.

/rant

 

[Dunerking]

Side question. Acton / Aqua Dulce how close is the fire to you.

Maybe 4-6 miles north of us. Currently the wind is pushing the fire away from us,but as we all know it can take a crappy turn and a lot more people’s lives could be changed.

 

[Backlash]

I can't help but think of what happened in Lahaina. 18 months and they haven't started the rebuilding process........ Are there any similarities to these catastrophic events??

 

[Mandelon]

It took Maui six months just to pick the landfill spot for the Lahaina firestorm debris. I'm sure LA will be better at that part.

 

[Lumpy]

Getting ahead of our selves aren't we? So where is Maui at now?

 

[riverroyal]

Getting ahead of our selves aren't we? So where is Maui at now?

We are construction workers, you can never plan too soon.

They haul off debris guys will make a fortune

 

[DarkHorseRacing]

So all this talk of fire insurance. We all know how crappy it is to get normal homeowners insurance or even high risk insurance from a reputable company and they “should” pay out, but then probably drop you like a hot potato.

So what about those of us on the last resort? CA Fair Plan fire insurance. Because this is state backed I doubt I can be canceled now but what are the odds they pay out due to a fire?

Do note that Fair Plan is just fire insurance for the structure, its not coverage of your contents, or coverage for calamities other than fire. If you want what your normal or high risk homeowners policy had, to combine that with the Fair Plan, you need a Difference In Conditions (DIC) policy which costs extra. And no you can't do a renters insurance as that is really contents only.

 

[hallett21]

So all this talk of fire insurance. We all know how crappy it is to get normal homeowners insurance or even high risk insurance from a reputable company and they “should” pay out, but then probably drop you like a hot potato.

So what about those of us on the last resort? CA Fair Plan fire insurance. Because this is state backed I doubt I can be canceled now but what are the odds they pay out due to a fire?

Do note that Fair Plan is just fire insurance for the structure, its not coverage of your contents, or coverage for calamities other than fire. If you want what your normal or high risk homeowners policy had, to combine that with the Fair Plan, you need a Difference In Conditions (DIC) policy which costs extra. And no you can't do a renters insurance as that is really contents only.

I bet they call this a FEMA incident and the federal government will foot the bill. No way CA pays out without federal help.

 

[Mandelon]

Getting ahead of our selves aren't we? So where is Maui at now?

We were there a few months ago. Only a few homes are in process and only a couple completed.