There is good news for foreign investors looking to purchase real estate in Australia. As of the beginning of 2009 the Federal Government will be implementing changes to the administration of property purchases by overseas investors.
The changes will streamline the processes involved and reduce the costs for foreign residents and businesses purchasing real estate in Australia.
They include short-term accommodation and differentiate between residential and commercial transactions, the purchase of blocks of land by non-resident foreign persons and the purchase of established houses by foreign companies for Australian based staff and temporary residents.
The changes will also remove the upper limit of $300,000, which has previously been in place for student visa holders.
The Real Estate Institute of Australia (REIA) welcomed the announcement, saying that the changes make sense and will have a positive impact on the housing market.
REIA President, Mr Noel Dyett said that while the announcements impact on the demand side of the equation, “we would also look for a supply side response”.
“Hopefully developers will respond to the announcement and bring on-stream developments that may have been put on hold because of the current economic climate.