Qld begins home buyback scheme

Twenty-three flood-impacted home owners in Goodna and Brisbane are the first Queenslanders to accept a voluntary home buyback offer following major flood events earlier this year.

The $741 million Resilient Homes Fund is part of the jointly funded Commonwealth-State Disaster Funding Arrangements (DRFA) and is open to Queensland home owners affected by the 2022 floods.

Those eligible are able to apply for funds to “raise, repair, retrofit or have their home voluntarily bought back”. 

For example, eligibility ranges from those seeking to replace floor coverings with water-resistant finishes, those seeking to raise their homes above the defined flood level, or those seeking to sell their homes back to the government. 

Of the 4,973 registrations, as at 30 September, 529 home owners have indicated a preference for the Voluntary Home Buy Back Program, while 1,387 selected a preference for house-raising, and 1,904 for resilient retrofitting.

A total of 40 buyback offers have now been presented to eligible Ipswich and Brisbane residents, from a total of 213 properties that have been identified for buyback in Brisbane, Ipswich, Logan, Lockyer Valley, Moreton Bay, Gympie, Fraser Coast and Sunshine Coast, with offers starting to be accepted.

The Queensland Reconstruction Authority is managing the Voluntary Home Buy Back Program, with Queensland’s Department of Energy and Public Works leading the house-raising and retrofitting components of the Resilient Homes Fund.

Homes that have been deemed eligible for the schemes are offered two valuations — pre and post-floods, and were able to accept the highest of those two valuations.

As at 30 September, more than 95 valuations had been undertaken, with expectations “to have all properties selected for valuation by the end of the year”.

In addition, managing director of the Finance Brokers Association of Australia (FBAA), Peter White, said home owners also had the option to get their own valuation done from an “agreed professional valuer”.

“It can’t be fairer than that,” he said.

For those with an existing mortgage, as with any debt, the borrower will need to repay the lender first, he said, adding that there was an opportunity for brokers going forward.

“Brokers need to be aware of this scheme for those who meet the criteria and then to communicate with their database for those that maybe affected by this, as those people will most likely be looking to purchase somewhere else with the funds they receive,” Mr White said.

“There is an opportunity there to act in the borrower’s best interests with a future loan that is suitable for their needs.”

While it will come as a relief for some, there will be an emotional toll for those needing to move from their homes, Mr White said.

Councils left to manage the property

Once a property is bought back, the local council manages removal of the home and future use of the land.

For example, where possible councils might seek to redevelop the land as a parkland if enough properties fell under the buyback scheme.

Deputy Premier and minister responsible for the Queensland Reconstruction Authority Steven Miles said the government was working with the Commonwealth, local governments, insurers and the building industry to roll out this program as quickly as possible.

“Advanced funds have already been provided to Brisbane and Ipswich councils to carry out this work, with funds available to other councils when required,” Mr Miles said.

“We appreciate the important work being undertaken by local governments, including Brisbane and Ipswich City Councils in progressing the buy back program for their communities.”

Eligible Queensland home owners impacted by the 2022 floods are being encouraged to register for the $741 million Resilient Homes Fund.

Meanwhile, the NSW government had committed (17 August) to a similar offer, however had provided little detail on the scheme.

[Related: Qld invests $741m to help rebuild flood impacted homes]