FIRB fee could turn away foreign investors: RE/MAX's Michael Davoren

GUEST OBSERVATION

Strengthening compliance and enforcement around foreign investment in Australia was a good thing, however a fee structure that made Australia non-competitive was not.

When foreign investors are looking at Australia, they are also likely to be looking at New Zealand, where there is no stamp duty and no capital gains, for instance.

The UK, USA and Canada may also be considered as investment markets, and no residential property application fees exist.

So the proposed fee for foreign investment in Australian property is higher than that in other countries such as Switzerland and Austria; but Austria and Switzerland are not realistically on the same real estate page.

Sure, the fee will generate dollars; but don’t turn the foreign investors away for any short-term financial gain.

Michael Davoren is managing director of RE/MAX Australia and RE/MAX New Zealand.