Real Estate Institute and Federal Government

Wayne Stewart: The Federal Government last month launched a crackdown on foreign investment in housing, and says around 200 cases are under investigation, according to Australian Broadcasting Corporation. It was triggered by concerns that foreign buyers are inflating property prices. Map: Newcastle 2300 The Real Estate Institute says targeted marketing campaigns are underway in China, England and the US spruiking the benefits of buying property in the Hunter Valley. But the Institute Hunter chairman Wayne Stewart said poor housing affordability in the region is due to a shortage of supply. Federal Labor says it is looking at changes to the tax minimisation laws as a way of curbing spiralling house prices and boosting budget revenue. He said foreign investors are purchasing properties off the plan. "We're certainly seeing a sprinkling of them coming into the Hunter as Sydney prices rise, and as the yields in Sydney become lower," he said. "I think we'll see an increase over the coming year or two. "We have a number of people who are going to China and doing seminars, talking up the Hunter and other regional areas." Changes to negative gearing would be 'catastrophic' The Real Estate Institute says scrapping negative gearing will lead to a "catastrophic shortage" of rental properties in the Hunter region. (news.financializer.com). As reported in the news.