From Michael Pascoe-Domain:
At the end of a week that saw the unemployment rate rise to 6.3 per cent and the Reserve Bank shave 25 points or so off the budget’s growth forecast for this year – not to mention more bad opinion polls for the government, speculation resurfacing about the Liberal leadership, and the lingering stench of politicians’ entitlements – Treasurer Joe Hockey called a media conference on Saturday.
Did the Treasurer feel an urge to address the nation on the unemployment rise, or how an economic growth downgrade would affect deficit reduction, or anything at all really about the Australian economy?
Looks suspiciously like a case of never mind all the trouble we’re in, look over there! A foreigner!
…I spoke to an Australian of Asian birth last week, someone reporting on the property business. He said he feels a little uncomfortable attending auctions. That’s not the way the nation should be. It would be a terrible thing if your politicians fuelled it as a distraction from more important issues.
Is Joe Hockey or the illegal trade of Australian property by Chinese (and local) criminals causing that discomfort, I ask you?
Basically this argument boils down to two wrongs make a right. Hockey is not doing anything on housing affordability more broadly so he shouldn’t do anything about foreign investors either, even though they are a key dimension in price rises, even though the activity is illegal.
If Pascoe-Domain gave two hoots about affordability or racism he would support transparency in the market.
Over to AFR-Domain:
Veteran Mosman real estate agent Robert Simeon has called the latest government announcement of a crackdown on foreign investors a “farce and a complete waste of time”, adding the number of illegal purchases is bigger than ever.
“It’s nothing more than a PR stunt and a distraction. It’s been done for feel-good cuddles…[Illegal sales] are greater than ever. It’s not a question of how many people are prosecuted, but how many are using loopholes to buy illegally,” he said.
A large percentage of foreign buyers were simply transferring property into the names of Australian residents “for just a $50 fee” to get around the rules, he said.
“If you took illegal foreign purchasers out of market, the market would not resemble anything near what it is today. There’s tens of thousands of illegal purchases.”
…Sydney buyers’ agent Pete Wargent said the latest announcement by the Treasurer would have no impact on buyers who purchased property illegally.
OK ATO, there’s a couple of nice juicy leads for you. Let’s see how cocky those who engage in, as well as aid and abet, this criminal activity are once prosecutions begin.
