Local professionals ‘taking advantage of’ foreign buyers

Local professionals ‘taking advantage of’ foreign buyers

Woman online
by 1 comments

Crooked intermediaries have been called out for initiating breaches of rules regarding foreign investment in Australian real estate.

Real Estate Institute of NSW (REINSW) president Malcolm Gunning said local intermediaries are often involved in violations because foreign investors usually intend to do the right thing when they visit Australia.

“They tend to seek advice from someone who they have been referred to who speaks their native tongue, and this is where the problem lies because they are often taken advantage of and given incorrect advice,” he said.

“The REINSW International Chapter has been alerted that many are being told to buy a property first and then make an application to the Foreign Investment Review Board second.”

The federal government proposed last week to introduce tougher penalties for agents and other third parties who “knowingly assist foreign investors to breach foreign investment rules”.

Mr Gunning said a tougher regime would provide a welcome disincentive, although he didn't claim that any agents were involved in helping foreign investors break the rules.

The institute suggested that the federal government promote the new compliance regime through local foreign language newspapers and major overseas newspapers.

However, Mr Gunning also said it is important not to scare off foreign investors as they are bolstering Australia’s construction industry.

[LinkedIn: Are foreign buyers impacting your local market?]

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2016

With a combined sales volume of $13 billion in 2016, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
How this agent's commitment to clientele built him a 25k-strong client base

In this episode of Secrets of the Top 100 Agents, host Tim Nearly talks to RT Edgar’s Glen Coutinho who ranked number six in this year’...

View all podcasts

How difficult is it to maintain a good work/ life balance?

Very – if I’m having balance my competitors are working
Not – I schedule the time into my calendar in advance
A little – It’s scheduled, but something always crops up
Work/ life balance – what’s that?
Do you have an industry update?