Labor to ban foreign investors from buying existing homes for at least two years, replicating Coalition policy

Critics cast doubt on effectiveness of policy, citing low volume of purchases by overseas buyers, as Labor seeks to improve housing affordability

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Prospective home buyers will face less competition from overseas, with Labor promising to ban foreign investors from purchasing existing homes for at least two years.

But the restriction - which replicates a policy announced by the Coalition last year - will capture less than 0.4% of the housing market, casting doubts over its efficacy.