Pensions Planning: The NUMBER

michaels

westv said:

chile_paul2 said:

Peterrr said:

OMG - you're right! So wracking my brain, perhaps what I heard was 0.5% rather than 5%... though now that appears a bit low 

I have heard and always used the rule of budgeting 1% of your house value for repairs / maintenance per annum.

However make sure you use the rebuild value of the property rather than the market value for the calculation.

I was curious to know mine and the BCIS rebuild calculator said £256k.
As far as I'm aware, the sale price is only around £170k to £190k!

That is fascinating, I had naively assumed that the rebuild cost was always far below the market value, locally rebuild is about 25%.....

Also means I guess if the house were to burn down you would be better off just asking the insurer for a cash settlement ased on the rebuild cost and then buying a different house and pocketing the difference.

LHW99

Rebuild costs also have to include site clearance

swindiff

On the flip side, rebuild costs don't include land purchase.

westv

Maybe, with inflation, rebuild costs have increased considerably more than house prices over recent years??

MeteredOut

westv said:

chile_paul2 said:

Peterrr said:

OMG - you're right! So wracking my brain, perhaps what I heard was 0.5% rather than 5%... though now that appears a bit low 

I have heard and always used the rule of budgeting 1% of your house value for repairs / maintenance per annum.

However make sure you use the rebuild value of the property rather than the market value for the calculation.

I was curious to know mine and the BCIS rebuild calculator said £256k.
As far as I'm aware, the sale price is only around £170k to £190k!

Is it detached, or semi-detached/terraced? The latter can often have a higher rebuild cost relative to their sale price.

westv

MeteredOut said:

westv said:

chile_paul2 said:

Peterrr said:

OMG - you're right! So wracking my brain, perhaps what I heard was 0.5% rather than 5%... though now that appears a bit low 

I have heard and always used the rule of budgeting 1% of your house value for repairs / maintenance per annum.

However make sure you use the rebuild value of the property rather than the market value for the calculation.

I was curious to know mine and the BCIS rebuild calculator said £256k.
As far as I'm aware, the sale price is only around £170k to £190k!

Is it detached, or semi-detached/terraced? The latter can often have a higher rebuild cost relative to their sale price.

Semi 
......

MACKEM99

This thread reminds me of something I heard a comedian say some time ago (not that it applies to many on here).

'You come into this world with nothing, therefore if you go out in debt   you have have made a profit!

😁

sgx2000

MACKEM99 said:

This thread reminds me of something I heard a comedian say some time ago (not that it applies to many on here).

'You come into this world with nothing, therefore if you go out in debt   you have have made a profit!

😁

Lol... Does this mean if you leave thousands to relatives, you have made a loss.....lol

DT2001

michaels said:

westv said:

chile_paul2 said:

Peterrr said:

OMG - you're right! So wracking my brain, perhaps what I heard was 0.5% rather than 5%... though now that appears a bit low 

I have heard and always used the rule of budgeting 1% of your house value for repairs / maintenance per annum.

However make sure you use the rebuild value of the property rather than the market value for the calculation.

I was curious to know mine and the BCIS rebuild calculator said £256k.
As far as I'm aware, the sale price is only around £170k to £190k!

That is fascinating, I had naively assumed that the rebuild cost was always far below the market value, locally rebuild is about 25%.....

Also means I guess if the house were to burn down you would be better off just asking the insurer for a cash settlement ased on the rebuild cost and then buying a different house and pocketing the difference.

I’ve just used the rebuild calculator and the cost is about 30% higher than what I think the value is. We are in the SWest and not one of the hot spots. Our stones walls are about 18” thick and would cost a lot to rebuild. This IMO would distort the maintenance budget well beyond the requirement. 

Nebulous2

michaels said:

westv said:

chile_paul2 said:

Peterrr said:

OMG - you're right! So wracking my brain, perhaps what I heard was 0.5% rather than 5%... though now that appears a bit low 

I have heard and always used the rule of budgeting 1% of your house value for repairs / maintenance per annum.

However make sure you use the rebuild value of the property rather than the market value for the calculation.

I was curious to know mine and the BCIS rebuild calculator said £256k.
As far as I'm aware, the sale price is only around £170k to £190k!

That is fascinating, I had naively assumed that the rebuild cost was always far below the market value, locally rebuild is about 25%.....

Also means I guess if the house were to burn down you would be better off just asking the insurer for a cash settlement ased on the rebuild cost and then buying a different house and pocketing the difference.

I'm in an unusual situation - but my rebuild cost is over 5 times the market value....