Uncategorized

Is it fair to only restrict foreign ownership in Agricultural Land?

This comment was made this week at http://www.macrobusiness.com.au  (link may be locked)

http://www.macrobusiness.com.au/2015/02/coalition-tighten-foreign-agricultural-investment/#comment-1084355

The solution to that problem is to restrict foreign investment in residential property to new builds.

That way farmers can sell their farm on retirement to a local and use the proceeds (which may be less than if they sold to a foreign buyer) to purchase a home at lower cost due to the abundant foreign investment in new housing stock.

Of course it is unlikely that foreign investors will be interested in investing in an illiquid asset like housing if the market is efficient and ponzi speculation on capital gains is not encouraged.

High prices for farms and for houses have a common cause.

Flogging assets and IOUs rather than goods and services off shore.

Categories: Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s