Prime Minister Tony Abbott has announced plans to make foreign property buyers pay a fee prior to transacting business in the country, after complaints that they are pricing locals out of their own property market.
A range of fees and civil penalties are expected to deter foreign buyers, which could mean that a foreign investor may need to pay a $5,000 application fee to be able to purchase a $1m home. Investments over $1m would require $10,000 fee for every extra million dollars.
Purchases by Chinese buyers in Sydney went up by 60% last year.
However, Abbott denied any intentions of directly hitting a particular country with these measures.
The UK is experiencing the same scenario in its housing market – with 70% of new-build homes in London bought by foreigners – but no moves have been announced to alleviate the problem for local homebuyers.
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