Foreign buyers face new tax in Victoria

[Tillie]

According to The Age Victorian government is introducing new 'stamp duty' type tax for foreign buyers. Current proposal is 3%. Also they proposed the higher land tax for foreign owners. Permanent residents and citizens would be exempt.

 

[Deltaberry]

Good policy

 

[Terry_w]

QLD already has a higher land tax - or lower threshold for foreigners - people not ordinarily resident in Australia, which could capture Australian citizens living overseas.

 

[flatlinerz]

Also jail terms for foreign buyers illegally buying properties in Australia.

 

[Tillie]

Do you think that Victorian new tax and federal government's new foreign investment rules policing process and penalties will have any impact on prices? any specific areas might be impacted?

 

[flatlinerz]

I think a lot of sales have been illegally bought.

 

[Peter_Tersteeg]

Do you think that Victorian new tax and federal government's new foreign investment rules policing process and penalties will have any impact on prices? any specific areas might be impacted?

I don't think that this would have a particuarly negative effect on prices, but it could serve to slow down the Melbourne market moving forwards (not a bad thing IMO) and generate interest in others.

Additional taxes from a particular state means other states may become more attractive. Foreign buyers are already starting to look to Brisbane which has previously ignored when compared to Melbourne and Sydney. Thus far Brisbane has been hot, but probably not as crazy as the two southern cities. An additional tax in Victoria could change that, even if it's only due to market perception.

 

[spludgey]

Also jail terms for foreign buyers illegally buying properties in Australia.

Does this that they're then a resident and caught in a catch 22?

 

[KangaBanga]

Does this that they're then a resident and caught in a catch 22?

Nope, crime was commited before they were a resident, and being in an australian jail doesn't grant you residency either.

So if caught, they will have to serve their jail term, and at the end of it get deported back to where they came from.

 

[chunho01]

According to The Age Victorian government is introducing new 'stamp duty' type tax for foreign buyers. Current proposal is 3%. Also they proposed the higher land tax for foreign owners. Permanent residents and citizens would be exempt.

Thank dear lord. Curb them, curb them good. Not pointing fingers at any particular nationality, but someone have got to stop this madness.

 

[The_Bludger]

3% on a $1M or $2M property is chicken feed to an Asian investor. Should make it 10% - that'll slow things down a little.

 

[Aaron Sice]

^^^^ only if you're thinking like an Aussie - next 5-10 years.

If you're trying to get capital out of a country, you'd happily pay a 10% "surcharge" - hell, you do anyway on public holidays.

 

[unloadmymind]

Thank dear lord. Curb them, curb them good. Not pointing fingers at any particular nationality, but someone have got to stop this madness.

Ah the Chinese!