When I won a large sum of money when playing the lottery a few years ago, I decided to invest some of it in real estate. My dad used to always tell me that bricks and mortar where a great way of protecting a large sum of money. Unfortunately, my father wasn't a real estate expert so his advice did not go beyond this very simple statement. I didn't know what to do for the best so I contacted a real estate agency. They were really great and they helped me to plan my property investments wisely. I started this blog so I could offer advice to others.
Australia has always been one of the favoured destinations for overseas visitors and a popular place to invest. Many foreign corporations and individuals want to buy property in this country and in general, the government awaits them with open arms. However, a number of changes should be considered by anyone considering a foreign investment in Australian property and it's important to be aware of the repercussions. What are these changes?
New Fee Structure
A number of new rules are being introduced by the government and key amongst them is the introduction of significant new fees that will be required with each application. These fees will vary considerably based on the size of the investment being considered. A different scale of fees will apply to those who want to buy residential real estate, as opposed to those who are looking for business gains.
The Foreign Investment Review Board will consider every application and will receive these new fees. Anybody seeking to purchase under the new guidelines will have to go through this Board, and there are also strict penalties if proper procedures are not followed.
In addition, the government wants to tighten regulations linked to any overseas investment in agricultural property. Accordingly, they have set up a register that will include full details of foreign ownership in agricultural property. If the correct details are not entered or if there are any other anomalies, significant fines based on the value of the investment will be levied. Furthermore, the government may force the sale of the property.
What Is the Reasoning?
Apparently, the government is trying to take some of the pent-up heat out of the market amid a worry that there is too much speculative investment from overseas. In essence, they are trying to protect domestic buyers from a price spiral and to create a more equitable playing field for all concerned. Many people say that this is simply a way of balancing out the marketplace, which was too heavily spiked in favour of foreign investment before. According to this train of thought, the original rules were designed to quickly increase investment in domestic housing stock, due to an under-performing market.
Considerable Opportunities Remain
These changes may be significant, but they shouldn't get in the way of anybody considering a viable overseas investment. The introduction of fees may be a considerable change over the current situation, where applications are free, but if the rules are followed, then no issues should arise.
Working with Experts
If you're considering this type of investment it's important to work with real estate agents that fully understand the new playing field.Share
16 October 2017