New Foreign Home Buyers Rules

[glen]

Hi guys,



I guess many of you will have heard that there are new rules regarding foreign investment in housing in Australia.



Here are a few snippets from the key reports:

New curbs on foreign home buyers

* April 24, 2010 12:00AM



COMPLAINTS about foreigners driving up Australian house prices have forced the Rudd government to reinstate a rule it scrapped in 2008 requiring temporary residents to sell their houses when they leave the country.



The government will also match travel details with ownership data to ensure people who violate the laws are caught, and will create new penalties under civil law that will also apply to real estate agents. The new regime will include provisions allowing the government to force those leaving Australia to sell their properties and to claw back any capital gains made by foreign investors who breach the arrangements.



There have been several complaints in recent months about foreign investment in the residential sector, mainly focused on Asian investors outbidding locals at auctions to buy homes for their children studying in Australia.

[url="http://www.theaustralian.com.au/business/property/new-curbs-on-foreign-home-buyers/story-e6frg9gx-1225857656381"]http://www.theaustralian.com.au/business/p...x-1225857656381[/url]

Foreign home buyers backflip

April 24, 2010



THE Federal government will scrap its controversial new rules on foreign investment in real estate, and instead tighten both the rules and their enforcement to head off a damaging political storm.



In a stunning about-face, Assistant Treasurer Nick Sherry has announced that temporary residents will now have to seek approval from the Foreign Investment Review Board (FIRB) to buy any real estate in Australia.



Temporary residents will also be required to sell their Australian property when they leave Australia. And for the first time, the FIRB will be given the means to ensure that the laws are enforced.

[url="http://www.smh.com.au/national/foreign-home-buyers-backflip-20100423-tjb3.html"]http://www.smh.com.au/national/foreign-hom...00423-tjb3.html[/url]



Here are some more articles on the subject:



[url="http://www.abc.net.au/news/stories/2010/04/24/2881985.htm"]http://www.abc.net.au/news/stories/2010/04/24/2881985.htm[/url]

[url="http://www.heraldsun.com.au/money/australian-federal-government-gets-tough-on-foreign-ownership-rules/story-e6frfh5f-1225857643432"]http://www.heraldsun.com.au/money/australi...f-1225857643432[/url]

[url="http://www.news.com.au/breaking-news/crackdown-to-help-first-home-buyers/story-e6frfku0-1225857780309"]http://www.news.com.au/breaking-news/crack...0-1225857780309[/url]

[url="http://news.smh.com.au/breaking-news-national/clampdown-on-foreigners-buying-property-20100424-tjky.html"]http://news.smh.com.au/breaking-news-natio...00424-tjky.html[/url]



The question I have is whether the prices will actually fall or just level off.



I am guessing the prices may fall maybe 5-10% and then level off. Any other predictions?



Cheers, Glen