The Rudd government in Australia has reinstated a rule that requires foreign people temporarily living in Australia to sell their homes when they leave.
The rule has been reintroduced in response to concerns that the influx of temporary Australian visa holders living in the country has driven up house prices. The change is intended to help the government to claim back capital gains made by foreign investors in Australian property.
The problem has been highlighted recently when a group of locals were outbid by a group of Asian investors who were buying homes for their children who were studying in Australia on Australian student visas.
Assistant Treasurer Nick Sherry explained why the rule is necessary: "The Rudd government is acting to make sure that investment in Australian real estate by temporary residents and foreign non-residents is within the law, meets community expectations and doesn't place pressure on housing availability for Australians."
The introduction of the law could actually be a positive thing for foreigners who are looking to move to Australia permanently. It is likely to keep house prices within reach and will improve relations between immigrants and locals.
