Fines and jail terms is what the Australian Government has proposed currently to ease the real estate pricing that is forcing many locals into a lifetime of renting.
The punishment will not only extend to investors but also agents that fail to comply. Whilst the changes will be announced in the coming week the Government is giving investors the opportunity to divest and come forward.
Foreign Investments on Property doubled from 2012 to 2014 to over $AUD 34 billion. The government is proposing a fee of $5000 per million on property purchases and $10000 in fees per 1 million thereafter.
Finance Minister Mathias Cormann stated that, whilst he understands the importance of Foreign Investments he also understands the need to ensure that Australians can continue to attain a fair price and chance to home ownership.
Agents and Investors will face unto $100000 in fines and jail terms up to 3 years if discovered to be in breach of the new laws.
It is still unclear as to how the Minister intends to spend the revenue to promote affordable housing in Australia and how is 0.5% on an $1m property on the average really going to make a difference?
This seems like a policy fail and cash grab.