Mount Isa Faces Potential Auction of Abandoned Properties Amid Rising Debt
Abandoned homes and rising debt could force sales in outback mining city
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In Mount Isa, Queensland, nearly 50 properties, some abandoned, have accumulated over $1 million in unpaid rates, prompting the local council to initiate legal action for potential sales. With the mining sector's decline, the situation raises concerns about its impact on the local housing market.
- 01Mount Isa City Council is pursuing legal action against nearly 50 properties for unpaid rates exceeding $1 million.
- 02The council may auction these properties if debts remain unpaid, which could significantly affect the local housing market.
- 03Over 80% of residents continue to pay their rates on time, but abandoned properties are creating a backlog.
- 04Local real estate agents warn that the sale of distressed properties could lower home values by about 10%.
- 05Owners can still negotiate payment plans before properties go to auction, as the council aims to recover almost all owed money.
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In Mount Isa, Queensland, the local council has initiated legal proceedings against nearly 50 properties that have accrued over $1 million in unpaid rates. This action is part of a last-resort recovery process, as the council warns that a large auction could impact the local housing market. CEO Tim Rose noted that while most residents pay their rates on time, the backlog of unpaid debts, exacerbated by the COVID-19 pandemic, has led to a significant number of abandoned properties. Local real estate agent Adam Buchert highlighted that these neglected homes are already affecting property values, with estimates suggesting that a $250,000 home could see a $25,000 drop in value. The council has sent notices to property owners, allowing them to negotiate payment plans before the auction process begins. As Mount Isa faces the potential for its largest forced property sale in years, the community watches closely to see how these developments will shape the city's future.
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The potential sale of distressed properties could depress local housing values, affecting both homeowners and investors in Mount Isa.
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