New rules for overseas investment in Australia

Individuals looking for property down under may be affected by tighter rules to govern investment in the country.

Surging prices and an increasing number of overseas buyers has meant that the government has decided to bring in new regulations to control the system.

The new rules mean that any temporary residents buying real estate must gain permission and if they decide to leave Australia they will be forced to sell their property.

In addition, foreigners investing from abroad will be limited to buying only new properties.

However, concerns have been raised over the fact that local Australians are being priced out of the property market.

"We want to make sure that foreign speculators are not going to force up prices for Australians seeking to, buy their first home and we think this is the right course of action," prime minister Kevin Rudd confirmed.

The rules were originally relaxed back in 2008 in an attempt to coax overseas investors to the country and help lift the property market.

According to the Residential Development Council in Australia, prices in the country will continue to rise due to a shortage in demand for new builds and land.

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