Over the past 18 months we have seen a dramatic recovery int he price of property in Australia, particularly the east coast capital cities of Sydney, Melbourne and Brisbane. In line with the recovery in the property market there has been a substantial increase in the value of foreign investment in the residential property market primarily in the off-the-plan purchasers.
The question being asked by many commentators and people looking to buy is whether the foreign activity is the catalyst behind the recent price rises.
Well this may apply to new off-the-plan purchases as foreigners are able to buy this class of asset as an investment for rental purposes but this is unlikely the case for existing properties as foreigners are generally not able to purchase existing properties unless it is their primary place of residence.
We have attached a great article from REIA that is well worth the read. Click here to find out more