Powered by MOMENTUM MEDIA
the adviser logo
Borrower

Govt cuts foreign real estate buyers out of the loop

by Nick Bendel4 minute read

New South Wales will no longer allow foreign buyers to access its $5,000 New Home Grant.

The government will announce during today’s Budget that it has closed the loophole which allowed foreigners to access the grant, according to News Corporation.

To continue reading the rest of this article, create a free account
Already have an account? Sign in

“Under the existing New Home Grant system, foreign investors have been able to buy multiple apartments and get $5,000 for each, with no checks as to whether buyers are from overseas or not,” News Corp reported.

Foreigners have accounted for 1.3 per cent of recipients since the grant was introduced in 2012, according to News Corp.

Advertisement
Advertisement

The grant is designed to stimulate construction and is open to buyers who purchase new homes, homes off the plan and vacant land on which a new home will be built.

One broker who derives almost all his business from Nepalese and Australians with Nepalese backgrounds said he couldn’t understand why the grant was ever accessible to foreigners.

Capkon Investments chief executive Kiran Thapa said the change of government policy would have no impact on his business because the grant was never an incentive for his clients to invest in Australia.

“When people invest from overseas, it’s because of the attractive return and our stable economy. It hasn’t been driven by the $5,000 in any way,” he told The Adviser.

[Related: LJ Hooker backs foreign investment]

Govt cuts foreign real estate buyers out of the loop
default
TheAdviser logo
default

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

daniel tuttlebee resimac asset fInance ta l27zun

Resimac takes controlling stake in Sonder

Resimac Asset Finance has expanded its acquisition stake in equipment finance business Sonder Equipment Finance...

READ MORE
asic ta 2

ASIC seeks ‘common-sense solutions’ to breach reporting

The Australian Securities & Investments Commission (ASIC) has committed to “improving” the operation of the...

READ MORE
andrew mills homestart ta htfetw

HomeStart drops graduate loan deposit to 2%

HomeStart Finance, a non-bank lender backed by the South Australian state government, has lowered the deposit hurdle...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more