Charlotte Foster
Money & Banking

Couple's retirement plans "ruined" after investment fail

A couple from Brisbane claim their retirement has been "ruined" after an investment went wrong. 

After first visiting Coffs Harbour in 1976, Raymond and Wendy Dibb saw potential in the area, land-banking 2.7 hectares of rural acreage in the late 1980s. 

The couple bought the land in Korora for $118,000 in 1988 and sat on it for decades, waiting for the day they could make their retirement fortune by subdividing and selling it off.

However they never got the chance, as the land was compulsorily acquired by Transport for NSW back in 2021 in order to make way for the Pacific Highway bypass.

The $2.2 billion highway is now currently being built over the top of the block, which will be the site of a major intersection when the project opens to traffic in late 2026.

The couple believed the land was worth a hefty $5.5 million, although Transport NSW valued it at just $1.062 million back in 2021.

A gruelling three-year legal battle finally ended in the NSW Court of Appeal on June 28th, with the Dibbs being awarded $1.359 million in compensation, although they argued they deserved more. 

“This was a pretty significant financial transaction that’s really gone bad for us,” Raymond Dibb told the Sydney Morning Herald. “And it’s got nothing to do with our investment choices."

“We’re talking about landowners just minding their own business, and someone comes knocking on your door, saying, ‘We’re going to take your land’”.

Mr Dibb slammed the entire process of the acquisition, saying that he believed an independent body should conduct compulsory acquisitions rather than the government.

In the Land and Environment Court, Justice Nicola Pain ended up increasing the couple’s compensation to $1.42 million after it was determined the land could have produced seven residential lots with less risk and cost.

She found they were also entitled to money to cover fees and stamp duty on a replacement block for their land bank, which the couple argued they would need to buy to delay paying capital gains tax.

Transport for NSW argued that they should not have been granted any money for stamp duty, with Justices Kristina Stern, Anthony Payne and Jeremy Kirk agreeing.

This was stripped from the award and they refused to revalue the block of land. The couple were also ordered to pay the government’s costs of the two-day appeal.

Mr Dibb is considering seeking leave to appeal against the High Court’s decision. He added that the couple’s retirement plans had been ruined by Transport for NSW, which originally offered just $470,000 for the land back in 2019.

A spokesperson for Transport for NSW said the government body “empathises with residents and landowners affected by property acquisitions” and said they always “try to minimise the need for property acquisition”.

Image credits: Shutterstock 

Tags:
money & banking, retirement, investment, highway