Australians seem divided about whether foreign investment is a threat to the housing market or an opportunity.
The Inquiry into Foreign Investment in Residential Real Estate has received submissions from ordinary Australians that voice concerns about housing bubbles, ‘dirty money’ and rule-breaking.
One submission said foreign investment is creating “ unprecedented price pressure on residential property” which has “priced out the average Australian buyer”.
Another submission warned of foreign investors who are using wealth acquired by “suspicious practices” to outbid “hardworking Australian tax paying citizens.
The inquiry was also warned about investors who are “surreptitiously getting around existing rules” to snap up the best homes in the country.
However, some Australians offered support for the existing regulations.
Urban Taskforce Australia said the current rules help stimulate development because they steer almost all investors towards buying new homes.
Meriton Group said foreign investment is helping to support Australia’s economy and housing market – and that it would be better to liberalise the rules than tighten them.
Another submission refuted claims that Chinese investors have been pushing up prices and said that research showed they actually pay less than other buyers for homes of a similar quality.
The aim of the inquiry is to find ways to increase the supply of new housing in Australia. It will announce its findings on October 10.
John can be contacted on 0749722081 or 0410433919. You can also email him at firstname.lastname@example.org or look him up on the net www.ihl.net.au. John Whitten is a credit representative (CRN 399796) of BLASSA Pty Ltd (Australian Credit Licence No 391237).