Weatherboard house sells for $1 under NSW flood buyback scheme

Imagine buying a house with the spare change in your pocket.

That’s exactly what a new Australian homeowner has done after attending a flood buyback* house auction.

The weatherboard house in South Murwillumbah in NSW’s Northern Rivers sold for a record low of $1 under the NSW government’s flood buyback scheme.

Homes under the scheme have been identified as being in flood-prone* areas and were purchased from their previous owners by the NSW Reconstruction Authority* for resale.

The four-bedroom house at 381 Tweed Valley Way was one of 11 properties in South Murwillumbah, Burringbar and Mooball that were auctioned off at the Murwillumbah Services Club by First National Real Estate earlier in the week.

The properties sold from between $1 to $5 for properties in South Murwillumbah and Mooball, and for as much as $8,500 in other parts of the region.

Only three of the properties sold for more than $1000.

With housing affordability considered a growing problem in Australia, Recovery Minister Janelle Saffin said the program was the “most accessible* housing program in the country”.

“We always promised that if you turned up to the flood buyback auction that you might walk away with a house for $1. Well, that’s finally happened,” she said.

“I love that we are giving an opportunity for families and young people to own a home for the first time and giving these homes a new lease of life off the flood plain*.”

Seven auctions have been held since June, with another 10 homes set to hit the auction block next week.

With no reserve price*, bidding can start for as low as $1.

But there is a catch. All buyers now have until November 30, 2026, to relocate their house to flood-free land. Usually, when you buy a house, you buy the block of land it sits on. With auctions under the flood buyback scheme, however, buyers don’t purchase the land. They only purchase the actual house – which has generally been damaged by floodwaters.

The state government scheme was introduced as a way to move flood-affected homes out of the danger zone and onto higher ground where there is less risk of being affected by flooding in the future. The government buys flood-affected homes located on flood plains then auctions off the buildings to new owners, who have 12 months to relocate the building to land that isn’t at risk of flooding.

NSW Reconstruction Authority Northern Rivers Adaptation Executive Director Kristie Clarke said the agency wanted to see as many homes repurposed* as possible.

“We’re seeing a lot of young families buying these homes and it’s proving to be a very affordable option,” she said.

ADDING UP THE TRUE COST
It’s worth noting that while the house only cost $1 to purchase, the buyers would have probably needed to spend about $500 on a Pest and Building Report* to determine the state the building was in prior to purchase, including the level of flood damage. They also would have needed to fork out money for legal fees.

And the real cost for the new owners will be relocating the house to new land and renovating it to ensure it is liveable*. Photos from the property listing show the $1 dwelling has damaged floors and walls, while its bathroom is in a state of disrepair.

Land is generally also quite expensive, depending on its location. If the new owner of the house needs to buy a block of land, the true cost of the home could add up to be hundreds of thousands of dollars once it has been relocated and renovated. But if the new owners can make it work, it’s an adventurous option for keeping the Great Australian Dream* alive.

POLL

GLOSSARY

• buyback: when the government buys back a house that the owners wouldn’t be able to sell to another person because of the risk associated with living there
• flood-prone: in an area that gets flooded regularly or is at risk of severe flooding
• Reconstruction Authority: a state government body set up to reduce the impact of future natural disasters and help communities recover from them
• accessible: easy to buy and affordable
• flood plain: a flat area of water next to a river or lake that floods when it rains heavily or when the tide is high
• reserve price: a minimum sales price set by the sellers of a property when it goes to auction. If the highest bidders at an auction don’t offer at least the reserve price, then the property usually doesn’t sell
• repurposed: reused
• Pest and Building Report: a report that tells anyone interested in buying a property about any issues the building has as well as any pest problems that could cause structural damage, such as a termite infestation. Getting a Pest and Building Report is an important step in buying a home because it helps buyers understand if there are any dangerous problems with the structure of the building that need to be fixed before it can be lived in
• liveable: clean, safe and fit to be lived in
• Great Australian Dream: to own your own home, which has traditionally been seen as a symbol of success and financial security. Historically, this meant a house on a quarter acre block, but nowadays, it could mean any type of property as long as it is yours

EXTRA READING
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Gnarly home has its own skate bowl
Outback town’s free land offer to lure new residents

QUICK QUIZ
1. Why did the house in South Murwillumbah sell for just $1?
2. What is a flood buyback scheme?
3. What is the purpose of the scheme?
4. What do homebuyers in the flood buyback scheme have 12 months to do after purchasing?
5. The purchase price for the house was only $1, but what other costs will the buyers likely have to pay?

LISTEN TO THIS STORY

CLASSROOM ACTIVITIES
1. Describe your dream house
What would be your dream house? Write a vivid description of your perfect house. Your reader should feel as though they are walking through it!

Time: allow at least 30 minutes to complete this activity
Curriculum Links: English

2. Extension
What do you think is the best way to move a whole house? Write a clear set of instructions and include diagrams.

Time: allow at least 30 minutes to complete this activity
Curriculum Links English, Design and Technology

VCOP ACTIVITY
Exercise the body and the mind
Exercise is not only important for the body, but it’s a lot of fun as well. Let’s bring more exercise into classroom learning by creating a VCOP PE game.

You can add a VCOP challenge to pretty much any game, and it’s a great way to encourage the teacher to let the class play more games.

Here is an example to get you started, then you create one of your own.

VCOP dodgeball
The normal rules of dodgeball apply. Two teams throw soft balls at each other and if you get hit, you have to sit out. The team who knocks out all the players on the other team, wins.

VCOP challenge: when you get eliminated, collect a mini-whiteboard and a basic clause from the sidelines. Up-level the sentence (make it better) by adding VCOP. When you show the teacher your completed sentence, you can return to the game.

Play for a set amount of time and the team with the most players left on the court wins.

Support: use the “Up-Level It” card set – players have to complete one card from the set instead of completing all VCOP challenges.

What can you come up with?