Australia to Raise Fees for Foreigners Buying Existing Houses

Foreign investors who buy existing houses in Australia will face higher fees as the government aims to boost housing supply. Treasurer Jim Chalmers announced on Sunday (Dec 10) that fees for foreign investment in established homes will triple. In addition, penalties for leaving properties vacant will double, while application fees for investment in build-to-rent projects will be reduced.

Higher Fees for Buying Existing Houses

Foreigners are currently only allowed to purchase homes in Australia if they live in the country for work or study. If they don’t become permanent residents, they are required to sell the property. However, they can keep the property vacant by paying a fee equal to the initial application fee.

The government’s new measures will increase the fees for foreign owners to keep established houses vacant. They will now be required to pay six times the existing amount. The aim is to encourage foreign owners to put their properties on the rental market, thus boosting the supply of rental properties.

Encouraging Investment in New Housing Developments

The Australian government also wants to encourage foreign investors to buy into new housing developments. To achieve this, it will set foreign investment application fees for build-to-rent projects at the lowest commercial level, regardless of the type of land involved. These changes will take effect from Dec 14.

Treasurer Chalmers emphasized that foreign investment plays a crucial role in the country’s economic success. The adjustments to fees and penalties are designed to ensure that foreign investment aligns with the government’s agenda of increasing the supply of affordable housing.

Conclusion

The Australian government’s decision to raise fees for foreigners buying existing houses and penalize them for leaving properties vacant is aimed at boosting housing supply. By increasing the fees and penalties, the government hopes to incentivize foreign owners to put their properties on the rental market. At the same time, the government wants to encourage foreign investors to buy into new housing developments by reducing application fees for build-to-rent projects. These measures aim to align foreign investment with the government’s goal of increasing the supply of affordable housing in Australia.

Keywords: buy properties in Australia, higher fees for foreign buyers, vacant properties, boost housing supply, rental market, affordable housing, new housing developments