A Newstead home will need to be demolished and rebuilt after a deliberately-lit fire tore through it on Wednesday night.
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Shortly after 9pm, two crews from the Tasmania Fire Service were called to Kintail Crescent after neighbours reported the blaze.
The house was not occupied at the time.
Neighbours say the house, which was fully furnished, wasn't being lived in - with the owner last visiting the house on Saturday.
One neighbour, who didn't wish to be identified, said he was woken up just after 9pm by what sounded like fireworks.
"I just heard bang bang bang bang, and the house was on fire," he said.
"I went outside and started trying to put water on it, but it just kept exploding like fireworks."
They said they were worried about neighbouring properties because of the intensity of the heat from the fire, but fire crews arrived within ten minutes to start extinguishing the blaze.
A smoke alarm at the property did go off - after fire was already tearing through, according to neighbours.
Launceston station officer Heath Bracey said that when crews got to the property, the fire intensity was so great that they it was "an external attack only".
"The structure was 80 per cent involved," he said.
"The damage is extensive, the property will need to be demolished and we estimate the cost to be $400,000.
"The property contains a lot of asbestos, so the personal protective equipment and the investigation will be challenging."
Eight firefighters were involved in extinguishing the blaze.
Investigations are ongoing into the cause of the fire, with a TFS spokesperson confirming the fire was deliberately lit.
Information can be provided to police on 131 444 or anonymously via Crime Stoppers on 1800 333 000.
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