Many residents in the ‘red zone’ of the Williamtown contamination scandal have been left without the option to sell. Residents are out in numbers voicing their frustration.
Financial institutions have advised real estate valuers that they will not be lending against these properties until they have more information on the issue.
This applies regardless of whether the property has been cleared of contamination or is on town water.
John Birrell from Tony Cant Real Estate Medowie told News of The Area, “Due to the risk factors involved with a property situated within the contamination zone, most banks are not lending against these properties.”
“There are a majority of valuers receiving instructions from banks to not attend property valuations,” he said.
Properties within the contamination zone have been marked on valuers reports, with financial institutions having the final say.
A recent sale within the Williamtown area fell through after contracts were issued as professionals refused to do a registered valuation.
This created concern for both the buyer and bank as they could not guarantee whether they would get their money back if they were to sell.
Mr Birrell said, “All other confidence in the market is definitely subdued as there merely isn’t enough clarity or information about the contamination issues.”
Until more information on the issue is made available, it is unlikely that financial institutions’ stance on the situation will change.
By Simone JOHNSON