Make an informed decision with our five-point list of essential reading on the topic
Make an informed decision with our five-point list of essential reading on the topic
A petition on the website change.org calling for more restrictions on foreign buyers has gathered more than 30,000 signatures and reinvigorated an ongoing national debate. We've gathered together some essential reading so you can make up your own mind on the issue:
1. The petition itself
Key line: “I am not suggesting no foreign investment, but a more thorough testing of foreign buyers and purchases and a toughening of regulations by the Foreign Investment Review Board”
https://www.change.org/p/the-executive-members-toughen-the-regulations-for-foreign-investment-in-australia
2. The Australian article from which the petition draws its facts (paywalled)
Key line: “The Australian revealed ¬recently that the FIRB, which sits within Treasury, has not prosecuted a single foreign investor for an illegal purchase since 2010.”
http://www.theaustralian.com.au/national-affairs/pc-of-foreign-home-sales-examined/story-fn59niix-1227001982925
3. The Foreign Investment Review Board’s official policy sheet
Key line: “The Government reviews foreign investment proposals against the national interest case-by-case. We prefer this flexible approach to hard and fast rules. Rigid laws that prohibit a class of investments too often also stop valuable investments.”
http://www.firb.gov.au/content/_downloads/AFIP_2013.pdf
4. The RBA’s study of foreign investment in commercial property
Key Line: “Foreigners have also purchased existing buildings from domestic firms that went on to ‘recycle’ this capital into the development of other new buildings in Australia”
http://www.rba.gov.au/publications/bulletin/2014/sep/pdf/bu-0914-3.pdf
5. NAB’s residential property survey for Q3 2014
Key line: “Foreign buyers were more prevalent in new housing markets in Q3. Foreign buyers accounted for 16.8% of total demand (about 1 in 6 of all buyers), and this share is tipped to rise further next year (17.3%) … Foreign buyers were slightly more active in established property markets in Q3, with their share of total national demand rising to 8.2% (7.2% in Q2).”
https://www.wholesale.nabgroup.com/sites/research/Publications/2014/Ad%20hoc%20%5BAustralia%2015-10-2014%5D13653.pdf
