CLOSE X

Register - if you don't have an account

Yes! Sign me up for Global Property Guide's fortnightly email newsletter.


Login - for registered users

Forgot Password?
Explore destinations
continent map couldn't be loaded Pacific Europe & Russia North America Latin America Asia Africa Middle East Caribbean

 



Investment Property News


My company
Global Property Guide

ON GPG


Foreigners buying properties in Australia illegally face jail term and fines

May 06, 2015 | 0 Comment(s)


Stepping up pressure on foreigners suspected to have bought properties illegally, the Australian government has told buyers to come forward and disclose their unlawful transactions by November, or face three year jail terms plus whopping fines. 

Under the new rules, foreigners who have bought properties illegally in Australia face fines of A$127,500 (US$100,050) and up to three years jail for individuals, and fines of more than A$637,500 (US$499,000) for companies. 

Third parties such as real estate agents who knowingly assist a foreigner to breach the rules will be fined up to $42,500 (US$33,254) for individuals and $212,500 ($US166,230) for companies.

Abbott said foreigners were illegally buying into the existing residential property market and driving up prices. 

“We want to ensure that locals are getting a fair go, that the playing field is at least level and, if possible, slightly tilted towards the locals,” he told reporters in Sydney recently.

Foreigners need to seek permission from Australia’s Foreign Investment Review Board (FIRB) before buying. They are not allowed to buy an established (previously occupied) house. They may buy an unoccupied new dwelling, but only if the FIRB feels that the purchase will not add to the shortage of properties available to native Australians. However, many foreigners are believed to have flouted these restrictions. Abbott said foreigners were illegally buying into the existing residential property market and driving up prices.

Treasurer Joe Hockey said the government was already investigating some 100 cases of illegal purchases. The Australian government has asked 55-year-old Hong Kong property developer Hui Ka Yan – the 15th wealthiest person in China - to sell a Point Piper mansion in Sydney within 90 days or face having it repossessed by the Commonwealth Department of Public Prosecutions.






Market Analysis - Australia
Time series for residential property
 
House price index, 8 capital cities
Price/Rent Ratio: 23 yrs

Free Newsletter

Fortnightly updates from the global property arena directly to your inbox.


Email Address:





Latest Country Analysis
News & Discussion


PROPERTY RECOMMENDATIONS

 
Download free property reports from international research houses

Our Newsletter

 
Fortnightly updates from the global property arena directly to your inbox.

Manage subscriptions
Chinese property buyers and Asian buyers, there is great property for high net worth Chinese buyers on Juwai.com

Which parts of the world are most attractive for property investment today?

Click here to see our Latest Investment Offers!

Close Me