Govt backflips over foreign investment laws

Govt backflips over foreign investment laws

27 April 2010 by Staff Reporter 0 comments

The federal government’s decision to reinstate the foreign investment guidelines has been welcomed by Australia’s real estate industry body.

The Real Estate Institute of Australia (REIA) president David Airey yesterday said the government’s backflip on foreign investment guidelines was exactly what Australia needed.

Late last week, the government announced that foreign investors may only purchase new housing stock and temporary residents may only purchase existing housing for use while they reside in Australia.

“We support measures that facilitate access for overseas investors to participate in the property market, however it has come to our attention that since 2008, the changes were not being effectively policed by the Foreign Investment Review Board (FIRB),” Mr Airey said.

REIA undertook a survey which showed that agents, particularly in Melbourne, were suspicious of the number of foreign entrants into the market place and whether those entrants were strictly adhering to the guidelines.

“We are looking forward to working with the government to achieve an outcome that meets the expectations of the Australian community and does not place undue stress on housing affordability in Australia,” Mr Airey said.

The federal government’s decision to reinstate the foreign investment guidelines has been welcomed by Australia’s real estate industry body.

The Real Estate Institute of Australia (REIA) president David Airey yesterday said the government’s backflip on foreign investment guidelines was exactly what Australia needed.

Late last week, the government announced that foreign investors may only purchase new housing stock and temporary residents may only purchase existing housing for use while they reside in Australia.

“We support measures that facilitate access for overseas investors to participate in the property market, however it has come to our attention that since 2008, the changes were not being effectively policed by the Foreign Investment Review Board (FIRB),” Mr Airey said.

REIA undertook a survey which showed that agents, particularly in Melbourne, were suspicious of the number of foreign entrants into the market place and whether those entrants were strictly adhering to the guidelines.

“We are looking forward to working with the government to achieve an outcome that meets the expectations of the Australian community and does not place undue stress on housing affordability in Australia,” Mr Airey said.

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