By Leith van Onselen
If I am selling a house, and a Chinese buyer wants to pay more than an Australian, I make a larger capital gain and can use the additional proceeds to buy the house of my dreams — possibly a new one — or add more to my superannuation, or spend it on consumption, but in each case, economic activity is increased. If the property is bought by a foreign buyer as an investment it increases rental stock, which is often in short supply. More capital comes into the country, which we need given we run a persistent current account deficit.
If I am selling a house, and a Chinese buyer wants to pay more than an Australian, I make a larger capital gain and can use the additional proceeds to buy the house of my dreams — possibly a new one — or add more to my superannuation, or spend it on consumption, but in each case, economic activity is increased.
If the property is bought by a foreign buyer as an investment it increases rental stock, which is often in short supply. More capital comes into the country, which we need given we run a persistent current account deficit.
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