New fees for foreign property investors.

image description

PRIME Minister Tony Abbott says application fees will apply to foreign investors seeking to buy residential real estate.

CIVIL penalties of up to 25 per cent of the value of the property, plus the enforced sale of the property, will also be imposed for breaches of foreign investment rules.

Any foreign investor that wants to buy a residential property under $1 million will face a $5000 application fee.

And for properties over $1 million it will be $10,000 for every extra $1 million in the purchase price.

A new register will also be set up for all residential and agricultural property bought by foreign investors.

"We need to make sure that all foreign investors are following the rules, and that those foreign investors who break the rules are not able to profit from breaking the law," Mr Abbott said in Sydney on Wednesday.

Source: - Perthnow, Feb 25