Rockhampton council unpaid rates auction: Properties sold under hammer
A crowd gathered at the Rockhampton council chambers on Wednesday as bids flew for properties with unpaid rates, including the closed Central Hotel in Koongal.
Property
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There were three remaining properties to go under the hammer at the unpaid rates auction on behalf of Rockhampton Regional Council on Wednesday, June 21.
The properties included the closed Central Hotel on Lakes Creek Rd at Koongal and a 416ha property at Limestone.
The auction list was published on June 6 with 20 properties to be sold unless all overdue rates, interest and amounts were paid immediately.
Over the two weeks leading up to the auction, properties were slowly crossed off the list as debts were paid and by the eve of the auction only eight properties remained but by the afternoon, there were just three left.
The closed Bouldy Royal Hotel at Bouldercombe was also at risk of being sold, however outstanding debts were seemingly paid at the last minute as it was delisted just 24 hours before the auction.
A crowd of around 50 people gathered at the council chambers in Bolsover Street for the public auction hosted by Trent Neven of LJ Hooker Rockhampton.
Under the Local Government Government Act, council has the authority to sell land to recover rates and charges that have been overdue for three or more years.
Properties are to be sold by way of auction first.
The reserve on the auction must be at least the market value or higher than the amount of the overdue rates or charge.
The market value must include a “written report about the market value of land” from a registered valuer who is not an employee of the local government.
A Berserker property at 109 Edington Street was the first to be auctioned.
The double-storey home on a 559 sqm block last sold in 1996 for $102,000. The half yearly charge on the rates notice was $1873.20.
Bids opened at $50,000 and moved quickly up in tens before the hammer went down on $240,000.
The old Central Hotel at 385 Lakes Creek Rd, Koongal, didn’t have as much luck.
The property sits on two titles on a 1602 sqm corner allotment and has a two-storey hotel with 10 boarding rooms upstairs.
It has been closed for some years, with the last time it was open reported in 2016, before it was last advertised for sale in 2018 for $185,000.
The half-yearly rates notice stated $7963.40.
Bids opened at $50,000 and the second bid shot to $110,000.
A handful of bidders fought it out from $126,000 moving up only in lots of $1000.
The property was passed in at $135,000 and Mr Neven moved onto the next property.
Bids later reopened and an offer of $138,000 was put forward and then $140,000 but this still didn’t meet reserve and Mr Neven announced it was passed in.
Mr Neven invited bidders to come and speak with him after the auction.
Under the Act, if the reserve price for the land is not reached at the auction, the local government may enter into negotiations with any bidder who attended the auction to sell the land by agreement, however the price must not be less than the reserve.
The local government may, after the day of the auction, decide to continue to offer the land for sale by another auction or sale by negotiation.
The final property was what the crowd appeared to be the most interested in - 140 Limestone Rd, Limestone, near Mount Morgan.
The 416ha rural property has a liveable shed and was last sold in 2016 for $335,000.
Bids opened at $10,000 and Grace Low of Harcourts Low and Co placed a second bid of $201,000 on behalf of a phone bidder.
Ms Low was successful on behalf of the phone bidder, with the final bid of $280,000.
Under the Act, the local government must use the proceeds of the sale to pay for expenses of the sale, land tax, rates or charges, including the overdue, and registered encumbrances, any body corporate fees and the person who owned the land immediately before the sale.
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