HOUSING

WHAT IS HOUSING COSTING AUSTRALIANS?

Many Australians are finding it more and more difficult to own their own homes due to escalating costs and not being able to get out of the rental market. 

Both the Labor, Liberal and National Governments have encouraged foreign investment, even to the detriment of Australians owning their own homes. We are told often that foreign investment is good for a country. Governments encourage foreign investment because of the revenue it brings. 

There are guidelines for temporary residents and foreign non-residents purchasing real estate property in Australia; they must apply to the Foreign Investment Review Board (FIRB) before purchasing.

Below is the guideline. (You can click on the website for further information)

A temporary resident is a person who is residing in Australia and:

Temporary residents may acquire one established dwelling only and it must be used as their residence in Australia.

Temporary residents need to apply if they wish to buy an established dwelling. These applications are normally approved subject to the condition that: 

http://www.firb.gov.au/content/guidance/gn2_jan2012.pdf

What guarantee do we have that foreign students (parents or family) who have purchased property, still own the property after the student no longer resides at the premises or left the country? 

What guarantee do we have that foreigners are not buying established dwellings?

The Foreign Investment Review board should be working with the Immigration department and the real estate industry. The point here is, if housing is illegally bought or held then it depletes the housing market for Australians. This may well drive up the price of housing, making it unaffordable for first home buyers. 

All foreign non-residents are required to notify FIRB of any proposed acquisition of residential real estate. Foreign non-residents or short term visa holders can invest in Australian real estate only if that investment adds to the housing stock. This generally occurs by acquiring new dwellings, off-the-plan properties under construction or yet to be built, or vacant land for development. Non-resident foreign persons cannot buy established dwellings as investment properties or as homes.

Are these guidelines adhered to and what practices are in place when someone purchases a property?

Across our nation we are seeing multi-story housing developments that are sold off the plan entirely to foreign investment. Australians don't have the opportunity to purchase from many of these developments. The only stamp duty paid to state governments approx $1,000 on the land. 

One Nation proposes: 

How many properties in our cities do foreigners own illegally? 

We would advise Australians to report anyone who they suspect may have purchased a property outside the guidelines of the Foreign Investment Review Board. At the end of the day it may make enough of a difference for Australians to own their home.     

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