Bush Fire Prone Zone (Vegetation Category 1)

Discussion in 'Property Experts' started by Anjohn, 9th Mar, 2020.

Join Australia's most dynamic and respected property investment community
  1. Anjohn

    Anjohn Well-Known Member

    Joined:
    8th Jun, 2019
    Posts:
    47
    Location:
    Sydney
    Hi, I placed a deposit on a house and land package near Maitland, and just noticed the land is in Bush Fire Prone Zone (Vegetation Category 1), what does that mean? Is this very common? Will this affect resale value in the future?
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    20,261
    Location:
    Sydney or NSW or Australia
    Yes. Positively or adversely - who knows.

    What is the BAL?
     
  3. Thomacino

    Thomacino Well-Known Member

    Joined:
    9th Nov, 2018
    Posts:
    162
    Location:
    NSW - Sydney
    Rutherford, Clifton and the like are mostly residential areas, I'd assume a house & land package would be one of the recently subdivded estates. So no, the bushfire rating of (vegetation cat 1) which would be highlighted yellow is not considered overly adverse for that area and for future resale purposes.
    Having said that, for mortgage purposes the valuer would likely report to the lender that it is a bushfire prone area and given the recent media attention on bushfire a recommendation for the lender to proceed cautiously would be outlined in the report followed by a environmental risk rating and possible Valuation Risk Alert, depending on the bank majority will still lend on the asset but may require you to take out an insurance policy with a certificate to follow. Unsure of its implications in terms of financing but from a resale point of view, minimal as your neighbour and similar properties in the area would be similarly affected. Also, prior to the subdivision if the area was timbered and is now no longer the case, a RFA bush fire risk assessment may change the BAL.