Residents of a Moruya Heads property returned from an afternoon walk on Monday, May 11, to find their garage completely engulfed in flames.
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Renee Crescent neighbours desperately attempted to extinguish the blaze with garden hoses, before firefighters arrived about 5pm, South Coast Police said.
The blaze destroyed the detached Colorbond garage and a partially-built small fibreglass boat.
Police said owners lost $10-15,000 worth of tools, lawn mowers, gas bottles, painting equipment, batteries and other small machinery.
Police said an electrical fault was possibly to blame, and the fire was not suspicious.
A couple of houses down, neighbour Beau Ward was shocked to see flames, and heard a gas cylinder explode.
He and other good Samaritans "jumped to action and worked as a team, ensuring the fire didn't reach the house and neighbours".
"We managed to control the blaze with garden hoses until the fire brigade came," he said.
He was grateful no one was hurt and praised emergency services.