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New South Wales will no longer allow foreign buyers to access its $5,000 New Home Grant.
The government will announce during today’s Budget that it has closed the loophole which allowed foreigners to access the grant, according to News Corporation.
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“Under the existing New Home Grant system, foreign investors have been able to buy multiple apartments and get $5,000 for each, with no checks as to whether buyers are from overseas or not,” News Corp reported.
Foreigners have accounted for 1.3 per cent of recipients since the grant was introduced in 2012, according to News Corp.
The grant is designed to stimulate construction and is open to buyers who purchase new homes, homes off the plan and vacant land on which a new home will be built.
One broker who derives almost all his business from Nepalese and Australians with Nepalese backgrounds said he couldn’t understand why the grant was ever accessible to foreigners.
Capkon Investments chief executive Kiran Thapa said the change of government policy would have no impact on his business because the grant was never an incentive for his clients to invest in Australia.
“When people invest from overseas, it’s because of the attractive return and our stable economy. It hasn’t been driven by the $5,000 in any way,” he told The Adviser.
[Related: LJ Hooker backs foreign investment]
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