Australian Property News
Changes to foreign investment in real estate
Posted on Tuesday, December 23 2008 at 10:37 AM
Costs associated with buying property in Australia will be reduced for foreign investors from next year.
The Federal Government has announced it will introduce changes to the administration of real estate purchases, which will come into effect early in 2009.
As well as reducing the costs for foreign residents and businesses, the changes will streamline the process of buying real estate.
The Real Estate Institute of Australia (REIA) has welcomed the proposed changes, which will include short-term accommodation and differentiate between residential and commercial transactions, the purchase of blocks of land by non-resident foreign persons and the purchase of established houses by foreign companies for Australian-based staff and temporary residents.
The changes will also remove the upper limit of $300,000 which was in place for student visa holders.
REIA president Noel Dyett says the changes, as well as being logical, will have a positive impact on the housing market.
“It seems contradictory that successive governments have looked to foreign markets for the export of goods and services but the purchase of non-strategic real estate by foreign owners has been restricted,” he says.
“Whilst these announcements impact on the demand side of the equation, we would also look for a supply side response.
“Hopefully developers will respond to the announcement and bring on-stream developments that may have been put on hold because of the current economic climate.
“This would also help improve the supply for domestic purchasers.”
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