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RBA allays foreign investment fears

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Australian Broker | 20 Jun 2014, 07:35 AM Agree 0
The RBA has debunked popular fears that foreign investors are driving up prices and snatching homes from the hands of first home buyers
  • Incognito | 20 Jun 2014, 12:45 PM Agree 0
    Debunked popular fears?

    From the article:
    1. Up to 10% of property by value being sold to foreign investors?!
    2. More than $17Bn of property in 2012-13?!!
    3. Foreign investment 'concentrated (four fifths) in new dwellings in NSW and Vic' (where FHOG applies on new property only)!???

    Fears not debunked, fears confirmed.

  • We are Muppets | 20 Jun 2014, 03:20 PM Agree 0
    The RBA and FIRB assume that all overseas buyers will follow proper procedure with acquisitions. The flood of cash buyers in Melbourne's prestigious suburbs certainly don't get what they want by doing things by the book. It's not in their culture. They have multiple books depending on who wants a look. Our economy is awash with undisclosed cash and it seems they have govt's blessings to bring it all to Aust and spend-up big. My hard working and tax paying clients that need a home loan just can't compete with the cash deals going down. When will the govt finally start effective recording of property ownership and verifying the owners legitimacy as a matter of course. That's right - we are now into removing red tape. Even if the buyers wanted to do it all by the book, there are many loopholes to wiggle through. Just google FIRB limits. Structure accordingly with some eager local help, and go on a buying frenzy.
    There are very good reasons why China and most other nations won't let foreigners buy freehold. If you are lucky and pay the right people the right "incentives", you might get a 100 year lease, that's all.
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