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Unlawful foreign purchases dam...

Unlawful foreign purchases damaging the Australian property market

Property investors bypassing the correct channels are making it hard for Australian people to buy properties, it has been reported.
First-time buyers in Australia are having their opportunities to buy homes damaged by the fact there are now more foreign investors sidestepping official channels, it has been revealed.

According to claims from veteran Melbourne buyer’s agent David McRae in The Australian, it has become virtually impossible for anyone other than Chinese and Malaysian buyers to purchase at auction, because they do not see money as being an object.

Foreign buyers who are looking into purchasing in Australia need to do so by applying to the Foreign Investment Review Board first and foremost, but Mr McRae said this is often not done when it comes to auctions.

“We don’t expect to win when I come up against people from Malay­sia or China," he added.

Foreigners not buying through the correct and lawful channels could be pushing up the price of property by as much as ten per cent, Mr McRae added, showing that more needs to be done to make sure they are not damaging the prospects of Australian people.

Posted by Ravin Chatlani

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