Federal Government

: The widened probe into foreign investment in Australian real estate comes a month after the Federal Government announced plans to crack down on rogue foreign investors amid concerns it was helping to fuel a dangerous property bubble in Sydney and Melbourne, according to Australian Broadcasting Corporation. While foreign investment laws prohibit foreign investors from purchasing existing residential real estate, they are encouraged to boost the housing supply by investing in new housing developments. Related Story: Housing bubble remark splits political parties Related Story: Australian real estate at risk of sharp falls: OECDRelated Story: Abolishing negative gearing could save $3b in four years: Greens Map: Australia Investigations are underway into 195 cases where foreign investment rules on residential real estate may have been breached, the Federal Government says. According to a statement from the office of treasurer Joe Hockey, 24 of 195 cases are foreign investors who voluntarily came forward to the Foreign Investment Review Board to say they may have breached investment rules. However, FIRB is currently negotiating a "voluntary divestment" with a British investor who came forward about a $700,000 property purchased in Western Australia. The total value of the properties under investigation is not specified but the statement said it included the "prestige market" as well as "real estate in the suburbs of our capital cities". The culprit behind rising house prices As easy as it is to point the finger at Chinese buyers amid rising tensions over housing affordability, the real culprit is right here at home, writes Ian Verrender. (news.financializer.com). As reported in the news.