Federal inquiry announced into foreign property investment

It’s good news for Australian home buyers and investors who are looking to secure their own financial future, with the Federal Government announcing an inquiry into its foreign residential real estate investment policy.

After six years of talking and writing about the implications of this policy including writing to the PM in January I’m delighted to see it being formally reviewed. 

In making the announcement the Chair of the House of Representatives Economics Committee, Ms Kelly O’Dwyer MP, said “…there have been concerns raised in the wider community from time to time that foreign investment in Australian real estate is causing a distortion in the market and making housing less accessible and affordable".  Which in a nut shell is what I have been saying would happen since 2008 when the foreign investment policy was changed to the status quo.

Under the current policy, 100% of a new apartment block or any new housing with FIRB (Foreign Investment Review Board) approval can be sold to non residents.  And there are no restrictions on what any one individual or corporation can purchase.  

The two main concerns I have with the current policy are that it's inflationary and that it will create a generation where more people will rent than own.  Down the track this will result in other knock-on social problems. 

I will be putting forward a submission on the issue to the Committee which is set to hand down its findings on the 10^th October this year.