Tax on foreign property purchases unlikely to slow price growth

 

Century 21 believes any additional tax on property purchases by foreign investors is unlikely to significantly quell activity in the Australian property market.

“An additional tax on property is unlikely to take the heat out of the market as domestic demand has by and large been responsible for driving recent growth in prices,” said Chairman and Owner of Century 21 Australasia, Charles Tarbey.

According to the Foreign Investment Review Board (FIRB), proposed foreign investment residential real estate fell slightly in 2011-12 to $19.7 billion from $20.9 billion in 2010-11. More recent figures are due out late December in the FIRB’s annual report.

“Century 21 has seen an imbalance of supply and demand in several local markets lately, another important driver of this price growth,” continued Charles Tarbey.

“While discussions around foreign investment are healthy for a developed economy, additional tax measures could have the effect of deterring foreign buyers completely.

“If we take action to deter foreign buyers from investing in Australia today, when we need them to support our economy in the future, they won’t be interested,” concluded Charles Tarbey.

Posted by Charles Tarbey on 26/11/2013 at 12:00 AM | Categories:

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