Rundown and derelict homes are still selling despite becoming an eyesore to the Wagga community, according to local property experts.
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Houses that have been poorly maintained, abandoned, destroyed by fire or vandalism are left in a derelict state for a number of reasons.
These reasons include, unresolved insurance claims, properties being under administration, deaths in the family or other financial reasons.
One Agency real estate agent Colin McGill said eyesore homes in Wagga are “interesting” in the local market.
“In a normal environment, derelict homes do usually affect the value of nearby or surrounding homes, but in Wagga there’s still demand for city living,” Mr McGill said.
“There’s a market for people wanting to buy a rundown home in Central and there’s strong demand and also potential for these homes.
“The money people are getting in Central Wagga at the moment, even for homes that need to be bulldozed, is crazy.”
A home on 84 Johnston Street, backing onto the Wollundry Lagoon, draws attention in a negative way: the home’s shell is the only thing remaining, as the roof and inside appear to be burnt out.
Local builder and developer Anthony Corbett said these rundown properties pose a “great opportunity” for people wanting to do a bit of work.
“They are often lower in value but still offer Central living and people can add value to them by renovating or redeveloping the block of land,” Mr Corbett said.
“There’s a couple of homes in Coleman Street which look like they have been ram-sacked and I doubt the owners next door would be happy.
“Living in a democratic society means people can do what they like with their properties, but there should be better access to these owners to avoid chasing and investigating to see if they’re willing to sell.”
Often signs of outstanding council rates are an indication that the home is abandoned and if the rate balances are more than five years, councils have the ability to sell properties under NSW government legislation.
Peter Campbell, a real estate and business broker in Wagga, said he was involved with the council in auctioning two derelict homes with outstanding council rates at the end of 2017.
“Last year there were two homes, one in Spring Street and the other one in Hilary Street, where both buildings were in poor gear,” Mr Campbell said.
“The buyers of the Spring Street building have refurbished the home.
“But, selling homes is always the last resort for councils.”
Wagga City Council community director Janice Summerhayes said council is responsible to ensure it is acting on the interest of protecting community health, safety and the environment.
“In the first instance, council staff will liaise with the property owner to discuss the particular concern and potential to rectify the issue,” she said.
“Where this is unsuccessful, the Local Government Act 1993 allows council to serve an order on the owner or occupier if it is not in a safe or healthy condition.
“The Environmental Planning & Assessment Act 1979 also allows council to serve orders for the owner to repair or demolish a property if it is unsafe.”
Ms Summerhayes said if the owner fails to carry out the actions required in an order under the Local Government Act or the Environmental Act, further action can be taken.
“Council can issue a penalty infringement notice, take legal action in the Local Court or Land and Environment Court, or carry out the actions required in the order and seek to recover the costs from the owner,” she said.
The final step would be to auction the property to prospective buyers.
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