Fire ravaged NSW home sells for top dollar as buyers hunt rebuild projects

A burnt out shell of a house on the outskirts of Newcastle has changed hands for $900,000 nearly a year after going up in flames.

The fire last year damaged much of the five-bedroom, three-bathroom house in the suburb of Salt Ash, with listing images revealing most of the roof was destroyed.

Additional images revealed charred roof beams, with the previous solar panels completely destroyed and damages to the structure, with multiple rooms in the Lemon Tree Passage Rd house also affected.

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The Salt Ash house sold for $900,000. Picture: PRD/Realestate.com.au

The home sold as a burnt shell. Picture: PRD/Realestate.com.au

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Damage to the garage door and windows were also clear on the 1.98 hectare property just off a neighbouring creek.

The property had sold a few months before the fire for $1,425,000, records showed. It is not known how the fire started but the area has a history of bush fires.

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Fire service had been called to the street in previous years to put out house fires.

Recent trends show buyers aren’t afraid of houses hit by fires, often seeing an opportunity to restore them or knock down and rebuild.

A 759 square metre block at 71 Pindari Drive in South Penrith with significant damage to the front, kitchen and multiple rooms sold for $820,000 in July.

Lead agent on the property Ali Khanchedar from Southlands Estate Agents explained the value was primarily in the land, but there was occasional buyer interest in salvaging some structures.

“If it’s not repairable, they’ll knock it down and you’ve always got its land value,” he said.

71 Pindari Drive in South Penrith still fetched a price of $820,000 despite significant fire damage. Picture: Southlands Estate Agents/Realestate.com.au

“Not only the resale would be there, but the market is going up so they obviously see the value in it.

“You can’t find vacant lots in South Penrith. People can go to Caddens and the surrounding areas, but it’s very rare to find.

“When the buyers were coming across that, we actually had multiple offers, multiple people that were interested.”

Around the corner, a home in Mount Druitt with no running water and graffiti-laden sold in May. The Dixon St property changed hands for $921,000.

Photos show properties destroyed by fire in Salt Ash.

A different property destroyed by fire on the same street in Salt Ash.

One fire-damaged family home in North Rocks even sold for $2,260,000.

The sale comes as PropTrack figures showed property prices have been rising since the Reserve Bank announced the first of three interest rate cuts in February, with national home prices rising 0.5 per cent over August alone.

It means the cost to purchase a home is 5.3 per cent – or about $48,000 – higher than a year ago nationally.

Home prices in regional areas too hit a new peak last month, now at 6.6 per cent growth over the year after a 0.3 per cent hike month-on-month.

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