Chamber backs innovative plan to lure internationals

AN innovative multi-entry visa category is being advocated for the Northern Territory as a way to attract more overseas people to live, play or study in Darwin and contribute to the city’s reactivation

AN innovative multi-entry visa category is being advocated for the Northern Territory as a way to attract more overseas people to live, play or study in Darwin and contribute to the city’s reactivation. It comes as the city is increasingly empty

AN innovative multi-entry visa category is being advocated for the Northern Territory as a way to attract more overseas people to live, play or study in Darwin and contribute to the city’s reactivation.

Former CLP Asian engagement and business minister Peter Styles is proposing a new My Second Home visa category (My2H) which is based on a similar highly successful scheme operating in Malaysia which has attracted thousands of international buyers.

The visa would allow an international buyer to purchase a property in Northern Australia (as defined in the white paper on developing Northern Australia) which only they or family members could use and could then only be sold to another international buyer.

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The visa would only remain active while the buyer owned the property. If the buyer chooses to sell the property then they would immediately forfeit their My2H visa.

Mr Styles said he knew of at least five local developers with shovel-ready projects, but the demand at the moment was soft so the chances of attracting local buyers were small.

“The five local developers between them have approximately $500 million of construction to start and another $500 million well advanced on the drawing board,” Mr Styles said.

“I have made arrangements with a Malaysian operator who currently has a team of over 250 agents selling these Malaysian properties internationally through their established networks. They are currently waiting for a decision for this visa class to operate in Northern Australia so they can begin selling units.”

There is also an opportunity for our local real estate agents to become involved.

Chamber of Commerce NT chief executive Greg Bicknell said Mr Styles’ proposal had plenty of merit and should be considered.

“Peter has briefed the chamber on a couple of occasions and we are definitely in support of it,” Mr Bicknell said.

“It would give a significant boost to our city heart, the construction industry and tourism with the boost to international visitation. It would put more people on international flights.

“The international visitors would add valuable economic volume for everyone.

“This concept has wider possibilities.”

Mr Styles has approached the Federal Government with the proposal and he is in ongoing discussions.

“I’m proposing that the scheme in Australia would be open to all international buyers, being high net worth individuals, who would be able to buy an apartment or unit in Northern Australia,” he said.

“Business visas are not suitable for this type of scheme because the purchasers will not be working or living permanently in Australia.

“The multiple-entry family visa I am proposing will allow family members of the buyer to visit, holiday and stay in the unit, for as long as the purchaser owns the unit.

“This opens up opportunities for the buyers to send their children to universities and schools in Northern Australia while having relatives able to care for them. International education and training is currently the Northern Territory’s third-largest service industry export. The scheme will enable an increase in those figures.

“The only way to dispose of the unit would be to sell it back to another overseas purchaser who also qualifies for a multi-entry family visa.”

Mr Styles said the M2H visa would also serve as a stimulus for the construction industry.

“There are developers in the Northern Territory currently retaining staff at a significant cost to their businesses hoping for a solution that will enable them to keep staff,” he said.

“The My Second Home proposal is about providing a stimulus to build wholly and solely for overseas buyers who can only live in their properties and can only on-sell their properties to overseas buyers.

“If we can stimulate the construction industry we will not lose our skilled tradies, and help create much needed jobs.

“The M2H visa will provide a desperately needed immediate injection of overseas investment into the NT economy and provide much needed export dollars.”

Mr Styles said he was conscious of concerns in relation to foreign purchases of accommodation units off the plan.

He said initially the M2H visa would have a number of conditions that would include restrictions to accommodation units in Northern Australia, no business ownership or paid work in Northern Australia, self-funded visas, and requirements of travel and medical insurance.

“This scheme will not require taxpayer money but will create income to governments in relation to stamp duty and other taxes on consumption,” Mr Styles said.

“And because the scheme will only allow sales back to other international buyers there is no impact on the local residential market or our children’s ability to purchase property at a reasonable price.”