10 February 2009
The Federal Governments decision to ease restrictions on foreign investment delivers welcome flexibility to developers at a difficult time, according to the Urban Taskforce.
Until now, developers who tenant newly built homes for six or twelve months have been barred from subsequently selling the property to a foreign investor, he said.
This has forced some developers to leave properties vacant, rather than lose the opportunities to sell to investors without permanent residency.
Mr Gadiel said new rules would give developers more options.
A developer can now choose to hold onto a new home and tenant it for up to 12 months, without losing the right to sell to foreign investors, he said.
Additionally foreign citizens in Australia on a temporary visa will not even have to go through the bureaucracy of seeking formal approval from the Foreign Investment Review Board – once new regulations commence later this month.
Mr Gadiel said a rule barring developers from selling more than half a developments new homes to non-resident foreigners has also been dropped.
While it would be rare for any developer to sell more than half the homes in a new development to foreign investors, this archaic rule sent the wrong message about Australias attitude to international investment.
The Urban Taskforce is a property development industry group, representing Australias most prominent property developers and equity financiers.