In relation to foreigners buying up Aussie property, I query...

In relation to foreigners buying up Aussie property, I query whether they are complying with FIRB legislation which requires pre approval from FIRB for existing property. The govt relaxed laws but that was in relation to new developments.

I understand the FIRB approval is a condition to settlement in any contract of sale. Problem arises if you are bidding at an auction which is unconditional. You may be at an auction bidding against a foreigner who has not got the necessary pre approval. If no approval has been obtained the govt should require the purchaser to put the property back on the market. Imagine the flood of properties that would result!!!

I think a current affaits will be showing a story about foreigners buying up property and landbanking this Monday night. I hope they go one step further and investigate whether those purchasers were pre-approved by FIRB??