It was the third suspicious fire at two vacant houses on the same road in as many weeks.
The first fire earlier this month was minor and brought under control quickly by the Matamata Volunteer Fire Brigade but a week later, on the morning of April 18, the same house was destroyed by fire.
Neighbour Colin Dench said he raced down to the scene about 7.30am but he was too late.
"I found the house was demolished. I couldn't see a roof line from our kitchen window."
The house was not tenanted and no one was injured.
On Wednesday night, police and firefighters were called back to the third fire in a nearby farm cottage, owned by the same company that owned the razed house.
One of the Auckland-based directors of the company said they had a security patrol check on the properties three times a night after the loss of the first cottage.
The businessman, who did not want to be named, said he understood the drama unfolded shortly after the fire, which began in a closet inside the house, was put out.
"The person still came back, after fire [fighters] had left. I believe the police have got someone in custody."
He called the situation "unbelievable".
The houses were usually rented out and the farm was leased to Balle Brothers, who crop the land for onions and other vegetables.
The company owns a number of agricultural and dairy support properties in the Waikato.
Waikato area fire risk management officer Peter Hallett said Wednesday night's fire, which began about 8.30pm, did not cause extensive damage "but it had the potential to".
A 19-year-old Waharoa man has been charged with arson in relation to the fire. He has been remanded in custody.
