Arrest after home invader killed, victim’s hand almost severed in axe attack

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A suspect has been arrested after an armed intruder was killed and a grandfather's hand almost severed as he defended himself from two home invaders on the NSW Far North Coast.

Two masked men armed with an axe allegedly stormed an Oxford Street home in Kingscliff, south of Queensland's Gold Coast, about 8pm on Tuesday.

The home invaders confronted 66-year-old Alan Kerr and struck him with the axe multiple times, partially severing his hand, police said.

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Kerr managed to grab hold of a knife to defend himself before stabbing one of the intruders.

Officers arrived to the scene to find a 29-year-old man, identified as Trae Laurie, laying on the verandah with serious knife wounds to the chest.

Despite the efforts of paramedics, Laurie died at the scene.

Kerr was found in the hallway in a semi-conscious state and was airlifted to Gold Coast University Hospital where he underwent surgery on Wednesday morning.

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A 26-year-old man was arrested at a Kingscliff home about 5.30pm on Wednesday, police said.

He was taken to Tweed Heads Police Station where he was "assisting investigators with their inquiries".

Neighbour Ken Rogers told 9News Kerr had lived in the area for a long time.

"He's got grown girls and they've got kids," Rogers said.

It's understood Kerr did not know his attackers personally.

Detective Inspector Matt Zimmer earlier said police were looking at whether a silver Toyota Corolla located nearby was linked to the incident.

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Despite the efforts of paramedics, the man died at the scene.

"We have been informed that the occupant, in self defence and in an attempt to protect himself, has armed himself with a knife and struck the deceased to the chest," he said.

"We will be examining the circumstances surrounding the incident, in particular the conduct of the occupant if the conduct was necessary and proportionate to his safety."

Zimmer said police were considering whether the incident was a robbery gone wrong or a case of mistaken identity. 

"We are seeking public assistance to identify the second male and anyone with information I encourage to come forward and consider the seriousness of this crime by contacting Crime Stoppers on 1800 333 000," Zimmer said.

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