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CASH CHALLENGE: Federal government changes to the Significant Investor Visa program are making it difficult for developers to raise funds from offshore. Photo: Attila Csaszar

Visa change hits developers

Western Australian MP Ian Goodenough has called for a ministerial review into the federal government’s tightening of offshore investment regulations, saying the policy change is having an unintended detrimental impact on property development.

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Osborne Park, WA
Knee-Jerk Policy causes pain. It's wrong to think the Chinese are pushing up house prices. End of the day it's supply side shortage that put's up prices. Demand is what it is - people looking for a place to live, be they renters or purchasers. Australia needs Capital to fund growth and expansion. The Chinese Investors have Capital. Not many others are in the market so why are we knocking back Chinese Capital??? Xenophobia?

Why should an investor be entitled to residency for investing and earning a return? If you cant raise capital any other way then there is a problem with your project.

Australia
For some reason Charles you are not believing the Government's stated rationale that it is trying to redirect some of the foreign capital to more productive uses in Australia's long term best interests. Cant think why you would not believe what the Govt says ;-) ? Investment has not been knocked back so why misrepresent that? Estimates are that 20% of new apartments in Melbourne ( mostly built with foreign capital and new apartments comprise most of the new housing), are empty and presumed to be owned by absentee foreign owners. That is a not helping as much as it could to alleviate the supply issues and so is probably contributing to higher prices. There are other reasons for shortage in supply of new housing and higher prices, negative gearing rules being one of them. And of course continuing historically high levels of immigration. The country cannot keep up with approx 200,000 new migrant residents each year at current settings. Anyway property developers and their spruikers like Ian G, should think of the new rules as an opportunity. They should start up some start ups and get the foreign investors to invest in those. Same model (as property development - gullible investors, promise of quick and dirty profits, developers take the money and run), different product. What's not to like?

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