Salisbury Council selling homes to recover years of unpaid rates

Two northern Adelaide homes are set to be auctioned this month in yet another last-ditch attempt to recoup unpaid council rates.

The homes at 1 Inman Place, Salisbury, and 549-553 Salisbury Highway, Parafield Gardens, are the latest in a spate of forced sell-offs by South Australian councils to recover longstanding property debts.

Ray White Port Adelaide selling agent Niki Pittakis, who is taking the two homes to auction on October 22, said council-forced property sales were becoming increasingly common.

“We actually sell quite a lot on behalf of the council,’’ said Ms Pittakis, who is selling the latest homes in a bid to recover unpaid rates owed to Salisbury Council.

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The Salisbury property at 1 Inman Place is being sold by Salisbury council to recover unpaid rates.

“We don’t have any access to the properties (prior to the sale) so buyers do unfortunately buy as is – I don’t even know what (each home) looks like inside.

“But, for the right price, we’ve sold every (property brought to auction by councils).

“There are buyers out there who are willing to take the punt (on buying a property sight unseen).’’

The City of Salisbury confirmed it was owed a total of about $63,000 in unpaid rates for both properties.

The rates had been in arrears for the past 12 years, it said.

“Council has taken this step (to sell the homes) only as a last resort, after efforts to make arrangements with the property owners were unsuccessful,’’ the council said.

Under the Local Government Act, councils may sell properties by public auction if rates have been in arrears for more than three years.

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The home will go under the hammer on October 22.

However, the current owners retain legal ownership of the properties until the hammer falls, with trespassing laws preventing internal inspections or photographs of the homes prior to auction.

Ms Pittakis said she was unable to even ascertain if the homes were currently occupied.

She said most buyers hoped to snap up a bargain but she had been inundated with inquiries and strong competition could drive up prices.

Investors and developers were particularly keen on the five-bedroom Parafield Gardens home, due to its large 2190sqm land parcel and proximity to schools, shopping and public transport, Ms Pittakis said.

The three-bedroom Salisbury home on a 544sqm allotment had attracted a “real mix of (inquiries from) non-owner-occupiers and some investors’’, she said.

While no price guides have been released, Ms Pittakis said the Parafield Gardens home could fetch up to $1000 per sqm, for a total selling price of almost $2.2m.

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The Parafield Gardens home at 549-553 Salisbury Highway will also be auctioned to recoup unpaid debt.

Last month, almost 60 properties forcibly sold by the District Council of Loxton Waikerie returned a combined total of more than $500,000 – more than enough to recover $170,000 that was owed in unpaid rates.

Peterborough Council, meanwhile, has sold eight properties this year, for varying prices between $46,000 and $137,000, to recover its unpaid rates.

Metropolitan Adelaide councils were last year revealed to be owed more than $43m in unpaid rates, with the cost-of-living crisis blamed for an increase in failures to pay bills on time and hardship applications.

Local Government Association South Australia president Heather Holmes-Ross said councils did not profit from the property sales.

“(Councils) only recover what is owed, with any leftover funds going back to the previous owner once all other debts and charges have been settled,’’ Mayor Holmes-Ross said.

She said most properties forcibly sold were deceased estates or vacant land.

– by Lauren Ahwan

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