Australian government re-imposes tough rules for foreign home buyers

Australia, 26th April: Australian government has once again tightened noose on foreign home buyers wanting to purchase property in Australia.

The decision comes in the wake of several complaints regarding increasing Australian house prices caused by foreigners.

The rule reinstated by the Rudd government had been scrapped way back in 2008 according to which all temporary residents in Australia are required to sell their property including houses before leaving Australia.

So, as per reversal of relaxed foreign ownership rules, all temporary residents must seek nod of FIRB (Foreign Investment Review Board) before purchasing any property in Australia. And the FIRB will see to it that all foreign buyers adhere to the new rules enforced by the Federal Government, Nick Sherry, Assistant Treasurer announced on Friday.

New foreign investment rules in Australia also require to do construction on vacant land within a period of 2 years or to sell that land.

The new real estate rules in Australia will also target all real estate agents and vendors. Anyone found breaching the Foreign Acquisitions and Takeovers Act will have to face civil penalties, clarified Senator Sherry.

The opposition has been strongly urging action by the Australian government following large scale buying of property by Chinese investors in Australia. It may be mentioned that nearly three weeks ago, Senator Sherry had denied any role of foreign home buyers in the real estate market of Australia.

He asserted that rules for Australian real estate market, especially for temporary residents in Australia need to be strengthened. His decision might be affected by recent reports saying several Chinese companies and sovereign wealth funds showing interest for investments in Australian property.

Tougher rules by Australian government were introduced since the compliance regime was very weak and Australia’s strong economy allured many foreign investors to buy property in Australia, Sherry said adding that it is good to allow temporary residents living in Australia to buy a home in Australia under strict rules.

As part of the crackdown on all those breaching new real estate laws of Australia, ownership data and relevant travel details will be matched to get hold of the cheats. Also, a new hotline (1800 031 227) is there for the public to report of any foreigner suspected of breaching new Australian real estate laws.