Catching Up With Demand: Foreign Buyers to Pay More to Buy Property in Australia
McCarthy Homes 344 Bilsen Road, Geebung QLD 4034 (07) 3326 6600
White sand beaches, picture-perfect scenery, unspoiled nature, unique wildlife and rich culture. There are many reasons foreign buyers fell in love with Australia, making it one of the top choices for residential property investing. As Australia’s appeal overseas remain strong, it prompted buyers to face fees just to apply to buy a residential property in the country. Under the foreign investment review system, any overseas homebuyer wanting to buy a house under $1 million will need to pay an application fee of $5,000. For more than $1 million, on the other hand, the cost of the application will be up to $10,000. The charges will increase by $10,000 for every additional $1 million in property value.
New Fees to Handle At a press conference, Prime Minister Tony Abbott and Treasurer Joe Hockey have decided to announce the changes to laws regarding the ability of foreigners to buy a house in the country. People in the industry think that the demand from overseas buyers has caused some political concern. That stemmed from a report that shows wealthy Chinese investors were buying luxury homes at huge premiums. Before, there was no fee required to pay to purchase a property in Australia. The proposed measures were created to give foreigners tough penalties for breaching rules about easing property prices for local homebuyers. If anyone decided to break the rules, the federal government will charge up to 25 percent of the value of the house. In addition, the violator will be forced to sell the property.
A Move for Domestic Buyers Abbott and Hockey explain that the proposed changes aim to give Australians wanting to purchase properties a fair option. They said they want to make sure that overseas buyers are following the changes in law. Recent announcement in property market means that the government will keep track all details of houses purchased in a register. Whether new or existing properties, industry professionals must screen them. Resources: http://www.bbc.com/news/world-australia31615314 http://www.mccarthyhomes.com.au/ http://www.abc.net.au/news/2015-02-25/foreignreal-estate-buyers-to-pay-fees-up-to-10000dollars/6260748