The government crack-down on foreign real estate investors continues with further penalties to be enforced. This action sends a strong message to both foreign investors and house-hunters struggling to enter the 'unaffordable' housing market.
Under the new regime, nonresidents illegally acquiring established properties will face a maximum fine of A$127,500 or three years imprisonment. They will also stand to lose the capital gain made on the property, 25% of the purchase price or 25% of the market value, whichever is greater. Third parties, such as real-estate agents and financial advisers, also may be prosecuted under the changes for assisting in an unlawful purchase.