Australia is paying foreigners (including from China) to buy new homes: Juwai IQI

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Australia is paying foreigners up to $50,000 each to buy new homes and save the economy, according to information released today by leading Asian real estate technology group Juwai IQI.

Chart: Australian Governments Are Paying Foreigners to Buy a House or Apartment

Chart: Australian Governments Are Paying Foreigners to Buy a House or Apartment

"It sounds strange to pay foreigners to buy houses and apartments, but this is a triple win for Australia."

Australia will pay foreigners as well as locals to buy a home, but buyers have to act quickly. The incentives expire in March and July of 2021, according to information released today by leading Asian real estate technology group Juwai IQI.

Juwai IQI Group Co-Founder and Executive Chairman Georg Chmiel said: "The governments’ calculation is this: you give us millions of dollars to support our economy and real estate market, and we will give you back some of the taxes we would otherwise have charged you.

"It sounds strange to pay foreigners to buy houses and apartments, but this is a triple win for Australia. These incentives will reduce the housing shortage, stimulate the economy with construction jobs, and protect the housing market from a sharp fall. All of that will help the Australian economy get back to growth.

"These incentives are tremendously attractive for anyone considering investing in Australia. Why pay more later when you can obtain substantial savings if you buy before these schemes expire.

"If you buy a new house or apartment in Victoria by mid-2021, you could save nearly up to AU$27,500. Victoria is waiving some of the taxes that normally apply when you purchase a property. For AU$1 million new house or apartment, that will work out to savings of AU$27,500. In the case of an existing home or a piece of vacant land, a million-dollar purchase will give you savings of $13,750.”

PERTH, WESTERN AUSTRALIA
Lily Chong, the Perth-based IQI Country Head for Australia, said:

"Because of the pandemic, most foreign buyers don't know about these incentives. When we explain it to them, their eyes pop open. Buyers are rushing for us to get their deals done before the deadline expires.

"These incentives will shift buyers’ interest from other parts of the country to Western Australia and also, to a lesser extent, to Melbourne. Buyers in Queensland are now looking at Perth because of the incentives. Buyers who aren't tied down to a specific location will go wherever they can to get the best deal. Right now, that's Perth.

"Some buyers are already planning ahead for when travel restrictions ease. We're getting a lot of interest from overseas buyers for the Airbnb ready apartments that we are currently selling. They are pre-approved for short term leasing, start from AU$303,000 and can deliver yields of 8%.

"The most appealing incentives are in Western Australia, including in the capital city of Perth.
"If you buy an off the plan apartment in Perth, you could get as much as AU$50,000 in on Stamp Duty rebate. This is tax free money that you can take right off the top of your transaction costs.

“Australian citizens who fulfil some other requirements and purchase an off the plan apartment, house and land package, or under construction townhouse in Perth this year are also eligible for a further AU$25,000 federal government incentive. This incentive will decrease to AU$15,000 if you purchase an eligible property starting January next year.

"If you purchase a house & land package or under construction townhouse in Perth this year, you could get AU$20,000 from the government of Western Australia.

“The same buyer can earn multiple incentives if they meet the criteria. One buyer can obtain a stamp duty rebate from the Western Australia government of up to AU$50,000 and another AU$25,000 rebate from the federal government on the same purchase. Or the same applicant can claim a combination of incentive on multiple property purchases."

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