Melbourne residents in the eastern suburbs have been told they could see their homes demolished to make way for construction of the $50billion rail loop, which could take decades to complete.

Joshua Liem, who had just moved into his “dream home” told 7News he was heartbroken by the news.

“Just the fact that it’s all taken away from us is absolutely devastating,” he said.

Residents were told of the plans via a “knock on the door and a letter” to let them know they may be forced out of their property.

Another family, who had been living in their home for 30 years, compared themselves to the characters in the Australian film ‘The Castle’.

“It’s a great movie, but I didn’t need to star in it,” Charlie Swanson said.