Following the reports that Australia’s property market has been crowned with the title of most expensive market due to Asian and other foreign cash flowing in, the Rudd Government on Saturday stated decided to tighten its regulations on foreign buyers.
The rules that were loosened in 2008 have been reemployed by the Government.
According to the re-imposed rules, the temporary residents need permission to for buying homes and that it is necessary for them to sell it, the time they leave. Also, the foreign investors have been now restricted to buying only new property.
It has been known that ordinary Australians are being thrown out of the box resulting in soaring prices and making the market in acceptably expensive.
Other things that have been added to the rules include inflexible penalties for compulsory sell orders, expanded monitoring. It also adds some tough regulations on the real estate agents who help foreigners disobey the rules.
Showing his concern over the matter, the Prime Minister Kevin Rudd said that the main aim of strengthening the restrictions is to make sure that the Australian families are not “priced out of their own family homes”.
Senator Sherry expressed his contentment on the restrictions imposed today, saying that these provisions are a warning to people who try to violate Australia's strict foreign investment rules.