What you suggested are saying to the "foreign" capital (especially the chinese) that we want your $$$ but do it the way we want.
Correct me if I'm wrong, this is not a racist statement, Foreign investment and ownerships in australia has never been a problem until the rise of Chinese investors? The same statement applied to a lot of developed and emerging countries in particular places like Hong Kong and Singapore. Both countries have a similar conundrum regarding property ownerships. Hong Kong Gov had ann special real estate stamp duty to deter chinese speculator,not one but two duties that the local now called it Double spicy duties. Since GFC, both capital properties price had doubled. This is creating big headache for policy makers, on one hand, they want to encourage foreign investment to spruik up the economy but on the other they want to make sure the assets are not over inflated. Singapore had similar migration policy 3 years ago to attract UNHW investors to Singapore. Consequences? Real estate price through the roof, and finally gov put a restriction on foreign ownership. Lucky for Gina and Tinkler before that happens!
HK and SG also share another similar problem, they are an islands (limited land) of apart from financial (low tax heaven) and transport hub, property is one of the core GDP activities. But that is not good for local residents because the speculative activities has gone to an extreme level of technically buying the property for the sake of purely capital gains. Property was passing like hot potato cake 2 years ago on top of cheap credits and lack of ownerships rules, speculators who bought the property can afford to sit on even without renting it out, creating the "shortage" illusion.
Back you our own backyard, last year residential investment from China alone is around $AUD 4B excluding mining, commercial and farm land. Theoretically, we should welcome this money, because it helps to create jobs and hopefully bring prosperity. but will that be the case? Not quite, because within the scope, australian is fearful of its long term implication of "ownership" from Chinese, I'm not implying that all chinese investors are here to land banking but ..... one have to make their own judgement.
Policies change accordingly i believe as the political and macro environment changes. if not mistaken in responses to high property prices, in 2009, immi change the pool mark as well as lifting the criteria for permanent residential visa. Subsequently, we change the rule of residential ownerships rules back in 2010 for foreign entities. Again in 2012, abolished the CGT discount for non resident in australia. Monetary threshold for farm land acquisition still stand at $248 million and i believe its on its way to change soon.
Not far from now, the UNHW with 5mil a pop chinese investor will slowly swamp the market before we knew it. However, Out of 1000+ eligible applicants (AUD$5 bil in total) since last Nov (Gov. estimated intake of 1000 applicants a year) , only less than 5 of them been granted. But when this floodgate is officially open, i really wonder whether our Gov. can handle the consequences.
The funny thing is, i wont be that concerned if the farm buyer happens to be Germans or Canadian. Im not racist but Perhaps I'm dealing with too many chinese clients. There is a saying in chinese that goes: "Happy to see each other, but definitely not living together".
