Chinese home buyers cautious over foreign investment rules

The Australian Financial Review (AFR)

Federal Treasurer Joe Hockey’s get-tough tactics with foreign investments in residential property are making an impact on foreign investors who are “too afraid to break the law”. Mr Hockey transferred all residential property monitoring to the ATO in May and the government is investigating 195 possible breaches. ACproperty.com.au, the largest Chinese property website in Australia has had a 40 per cent increase in queries from buyers seeking clarification on investment rules. “Some have no visa, on a student visa or are waiting for visa approval are looking to buy but are holding back until they get a clear understanding of the law,” ACproperty director Esther Yong said. “Unlike what most people think, the majority of Chinese buyers are happy to follow regulations. Recent crackdowns on breaches have definitely raised awareness among Chinese buyers. “But a lot of buyers are calling us to clarify the regulations instead of FIRB because of the language barrier. They can speak basic English, but when it comes to understanding the law, they would much prefer to speak to someone in Chinese.”