I don’t think I have a chance purchasing this property, with all the international buyers interested
This is all too common, the frustration of losing a property to a cashed up foreign ‘investor’ has been plaguing our industry.
However, the perception may be more intimidating than the reality, it may be hard to determine who is actually a ‘foreign investor’.
Regardless, the government is correctly making an attempt to assist Australians and ‘first home buyers’ in the Real Estate market by implementing fees and charges pre-purchase to foreign purchasers, here are a few rhetorical questions;
A foreign investor must pay $5,000 upon application (interest?) for a property under $1,000,000 in value and $10,000 for every Million thereafter;
Does this mean they have to pay $5,000 pre Auction?
What if the Auction is estimated around $800,000 and $5,000 is paid but then the Auction creeps up over $1,000,000 is the second payment due?
Does this now mean that our foreign investors will be bidding with even more dogged enthusiasm at our Auctions having skin in the game pre Auction?
The thought of paying $20,000+ before an Auction only to lose by $3,000 to a National would be a determinative factor in an Auction, it may shape the buyers motives away from frivolous bidding but may also encourage extreme outbidding.
I am trepidatious about these new extreme measures that may fill ‘Aussie’ buyers with confidence and ‘foreign investors’ with a new level of determination, or desperation.
Of course these tariffs or taxes or ‘application fees’ or whatever they may be are only applicable on existing properties, does this change anything?
Hopefully this thought bubble will be ironed out and we will all have more clarity soon.
Thomas Merriman
Thomas Merriman 