Australia streamlines foreign purchasing of property

The Real Estate Institute of Australia (REIA) has welcomed that country’s Government's announcement of changes to the administration of real estate purchases by foreign investors.

The changes, which will be introduced early this year will streamline the process and reduce the costs for foreign residents and businesses purchasing real estate in Australia.

“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”, said REIA President, Noel Dyett.

The proposed changes 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 has previously been in place for student visa holders.

These changes, as well as being logical will have a positive impact on the housing market.

“Whilst these announcements impact on the demand side of the equation, we would also look for a supply side response”, continued Dyett. “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”, he concluded.
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