New rules are being assessed by our Federal Government that look to give protection to property developers from foreign buyers that pull out of deals.
The changes are set to allow foreign buyers to come in and purchase an off-the-plan property when another foreign buyer falls over and fails to reach settlement.
Developers under the new laws would have protection by being able to find a new foreign buyer in case their existing foreign buyer pulls out of an off-the-plan purchase.
The changes address concerns the market could be damaged by rising off-the-plan sales from foreign investors that don’t get finished.
It would mean the Australian Government wouldn’t consider a dwelling that has just been built or is under construction an established dwelling when the title has never actually changed hands.
If the property fails to reach settlement it returns to its original status of new dwelling, allowing a new foreign buyer to take over the reins.
The Government’s foreign investment framework currently allows foreigners to purchase new Australian dwellings to encourage development, new home building and increased housing supply, a crucial weapon in the fight against housing affordability problems.
The change to the regulations will soon be made to allow developers to get an official certificate allowing them to sell to a foreign buyer due to a failed settlement.