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Calls are growing for Australia to BAN foreign investors from buying property in a bid to make property more affordable for first time home buyers
- Canada has introduced a new policy that prohibits foreigners from buying property
- Many Australians have called on the Australian government to take the same measure.
- But one expert believes the measure is just a “band-aid fix” to housing problems.
A controversial housing policy introduced in Canada, barring foreigners from buying property, has won public support in Australia, but some experts believe it is a “band-aid fix” and that the government is better off building more houses .
Canadian Prime Minister Justin Trudeau implemented the measure on Sunday after raising the idea during last year’s election campaign to ensure more housing was available to citizens.
The bill, dubbed the Non-Canadians Purchase of Residential Property Prohibition Act, seeks to quell the country’s housing crisis by banning all outsiders, particularly investors, from buying property in its 10 provinces.
While the policy prohibits foreigners from buying property, it does allow refugees and permanent residents to buy houses.
Canada’s move has been welcomed in Australia, with many calling on the government to adopt a similar policy.
A new housing policy that prohibits foreigners from buying property in Australia has gained widespread support (file image)
The recent backing for the measure was sparked by a policy implemented in Canada last Sunday by the country’s Prime Minister Justin Trudeau (pictured), after he earlier proposed banning foreigners from buying property in Canada last year.
‘It’s a great solution. Australia should follow Canada’s path in addressing the housing crisis,” one social media user wrote on Twitter.
Another said: “I think Australia should seriously consider it for the same reason Canada did, and for all foreigners.”
Come on, Anthony Albanese. Let’s help Australians pay for housing and stifle foreign purchases. Can we follow Canada’s example?’ commented a third.
‘Australia needs a law that prohibits foreign ownership of property like Canada does. It could help alleviate the housing crisis,” added another.
Thousands of social media users on Facebook and Twitter posted comments in support of the measure.
But PropTrack’s director of economic research, Cameron Kusher, does not recommend the policy for Australia’s property market, warning that it is a “band-aid” solution to availability.
‘Certainly, foreigners have more purchasing power than first-time buyers. But I don’t think that’s the crux of the matter. These things tend to play into xenophobia a bit,” he said. News.com.au.
Kusher said foreign investment was only “a small part of the housing market” and that foreigners will only look to other markets if they are banned from buying in Australia.
While many Australians have called for the government to adopt the measure, PropTrack’s director of economic research Cameron Kusher says the policy is just a “band-aid fix” to Australia’s housing availability (file image)
The Albanian government has pledged to build one million new affordable houses and social housing (file image)
He suggested building more housing to balance supply and demand.
The Albanian government is already working to finance the construction of one million new homes and more social and affordable housing.
The Prime Minister invested $350 million to deliver 10,000 new homes, a $10 billion Housing Fund for Australia’s Future that will build 30,000 new affordable and social housing properties, and created a council to advise the government on housing supply and affordability.
Foreigners buying property in Australia can only buy new property or vacant land.
They cannot buy existing properties unless they undergo a major renovation that increases the housing stock, such as converting one house into two townhomes.