Sale of foreign-owned houses ordered

australian_flag_thongsNew Zealand housing market may be in for a second wind as foreign investors in the Australian property market start to fall foul of new investment regulations. Investors may look for new places to invest.

The estates were bought illegally by nationals from Canada, China, India, Malaysia and the United States, the statement said. New Zealand also has new laws governing foreign ownership and if you are unsure of your reporting obligations as a landlord contact our property team.

Australia’s conservative government has been cracking down on foreign property sales to improve affordability, while financial regulators imposed a speed limit on growth in investment loans. Since the foreign ownership crackdown began last year, the government said it had investigated more than 1,300 property sales and had another 800 under investigation. Severe penalties apply to buyers who have breached the rules.

The Australian government says it has ordered the sale of another eight residential properties bought in breach of foreign ownership laws, over concerns offshore buyers are driving up house prices. Australian capital city homes are considered among the most overpriced in the world, and the Federal Government announced penalties for foreigners who breach existing rules that restrict them to buying new homes only.
The Daily Telegraph reports 27 properties valued at $76.4 million, including the $39 million Villa del Mare mansion at Point Piper and an $8 million Elizabeth Bay property, have been sold or are in the process of being sold. A Windsor property valued at $518,000, which was illegally purchased by Canadian buyers, is the latest NSW property to be sold.It is illegal for foreign buyers to purchase an established dwelling in Australia without approval from the Foreign Investment Review Board. Since the foreign ownership crackdown began last year, the government said it had investigated more than 1300 property sales and had another 800 under investigation.Severe penalties apply to buyers who have breached the rules. The latest set of forced sales amounts to more than $A8 million ($NZ8.5 million) and includes a $A5.1 million house in the state of Victoria.
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