Authored by the expert who managed and guided the team behind the Australia Property Pack
Everything you need to know before buying real estate is included in our Australia Property Pack
Foreigners face strict rules when buying property in Australia - you can only purchase new dwellings or vacant land, not existing homes.
As of June 2025, Australia has a ban on foreign buyers purchasing established properties until March 2027, making it crucial to understand what you can legally buy and the approval process required from the Foreign Investment Review Board (FIRB).
If you want to go deeper, you can check our pack of documents related to the real estate market in Australia, based on reliable facts and data, not opinions or rumors.
Foreign buyers can only purchase new properties or vacant land in Australia with FIRB approval, while locals face no restrictions.
Expect to pay 20-30% deposit, higher interest rates, additional stamp duty surcharges of 7-8%, and FIRB fees starting at AUD 6,600.
| Buyer Type | Property Rights | FIRB Approval Required |
|---|---|---|
| Australian Citizen/PR | Can buy any property type | No |
| Non-resident Foreigner | New dwellings & vacant land only | Yes |
| Temporary Resident | New dwellings & vacant land only | Yes |
| Key Restrictions | Ban on established homes 2025-2027 | - |
| Minimum Deposit | 20-30% for foreigners | - |
| Additional Costs | 7-8% stamp duty surcharge | AUD 6,600+ fee |
| Vacancy Rules | Must be occupied 6+ months/year | Annual fee if vacant |
What types of properties can foreigners legally buy in Australia, and how does that differ from what locals can purchase?
Foreigners can only buy new dwellings or vacant land in Australia, while locals can purchase any property type without restrictions.
As a non-resident or temporary resident, you're limited to purchasing brand new properties that have never been occupied or sold, directly from developers. You can also buy vacant residential land, but you must start building a dwelling within four years of purchase.
The most significant restriction is the ban on established (existing) homes for foreign buyers, which runs from April 1, 2025, to March 31, 2027. This means you cannot buy pre-owned houses or apartments during this period, with very limited exceptions for large-scale redevelopments that create at least 20 new dwellings.
Australian citizens and permanent residents face no such restrictions - they can buy new properties, established homes, vacant land, or any other residential property type without needing government approval.
It's something we develop in our Australia property pack.
What visa or residency status do you need to buy property in Australia, and does it change depending on the type of property?
Your visa status determines what property you can buy, but purchasing property won't grant you residency or a visa in Australia.
Non-residents can only purchase new dwellings or vacant land with FIRB approval. Temporary residents have the same restrictions - they can buy new properties or vacant land, but during the 2025-2027 ban period, they cannot purchase established homes even as their principal residence.
Permanent residents and Australian citizens need no FIRB approval and can buy any property type. The key distinction is that buying property provides no pathway to residency - while investment visas like the Significant Investor Visa exist, they require substantial business investments, not just property purchases.
Your eligibility doesn't change based on property type - if you're a foreign buyer, you're restricted to new properties regardless of whether it's a house, apartment, or townhouse.
Do you need to physically be in Australia to purchase a property, or can the process be handled remotely?
You don't need to be physically present in Australia to buy property - the entire process can be managed remotely through digital channels.
The Australian property market is well-equipped for international buyers, with most transactions handled via email, phone calls, and digital signatures. Many foreign buyers successfully purchase properties without ever setting foot in Australia during the buying process.
You can hire buyer's agents, lawyers, or trusted representatives to inspect properties on your behalf, conduct due diligence, and manage the transaction. Virtual property tours are common, and Australian banks often allow remote account opening for overseas clients.
Legal documents can be signed electronically or through power of attorney arrangements, and settlements are routinely handled without the buyer's physical presence.
What are the tax implications for foreigners buying and owning real estate in Australia, including income tax and capital gains tax?
| Tax Type | Rate/Amount | Key Details |
|---|---|---|
| Stamp Duty Surcharge | 7-8% additional | Varies by state, paid on purchase |
| Land Tax Surcharge | Varies by state | Annual tax with foreign owner surcharges |
| Income Tax (Rental) | 32.5% minimum | No tax-free threshold for foreigners |
| Capital Gains Tax | Standard rates apply | No main residence exemption |
| CGT Withholding | 12.5% of sale price | On properties worth $750,000+ |
| Vacancy Fee | Annual fee varies | If unoccupied >6 months/year |
| FIRB Application | AUD 6,600+ | Based on property value |
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What's the full step-by-step process for a foreigner to buy property in Australia, and what documents do you need to prepare?
The process involves 10 key steps, starting with FIRB approval and ending with post-settlement tax registrations.
First, confirm your eligibility and ensure the property type is allowed for foreign buyers. Then apply for FIRB approval online, paying fees starting at AUD 6,600 - approval typically takes 30 days. Open an Australian bank account remotely to manage transactions.
Arrange financing if needed - foreigners can get mortgages but expect 20-30% deposits and limited lender options. Find a suitable property using agents or buyer's agents who offer virtual tours. Make an offer conditional on FIRB approval and sign the contract.
Hire a conveyancer or lawyer to handle legal checks, conduct building and pest inspections, and manage settlement. At settlement, pay the balance and complete the legal transfer. Post-settlement, register with the ATO and lodge any required returns like the annual vacancy fee.
Essential documents include your passport, visa (if applicable), FIRB approval certificate, proof of funds, bank statements, the signed contract of sale, and identification documents for verification.
Is it mandatory to hire a lawyer or conveyancer when buying property in Australia, and what do they typically handle?
While not legally mandatory in all states, hiring a conveyancer or solicitor is highly recommended and essentially necessary for foreign buyers.
These professionals manage critical aspects including contract review, legal compliance checks, property searches, and settlement coordination. They ensure your interests are protected throughout the transaction and help navigate complex foreign ownership regulations.
In many states, electronic conveyancing is mandatory, and only licensed professionals can access the required systems. They handle title searches, council checks, arrange settlement dates, calculate adjustments, and ensure proper registration of ownership.
For foreign buyers, they're particularly valuable in ensuring FIRB compliance, understanding state-specific foreign buyer obligations, and managing the additional documentation required for international purchasers.
It's something we develop in our Australia property pack.
Where do foreigners tend to settle in Australia, and what draws them to those cities or regions?
Sydney and Melbourne attract the largest foreign populations due to established migrant communities, major universities, and business opportunities.
Sydney remains the top destination with its global business connections, world-class universities, and diverse suburbs like Haymarket and Ultimo near the CBD. Melbourne follows closely, offering a strong cultural scene, excellent education facilities, and established communities in Carlton and Clayton.
Brisbane, Perth, and Adelaide are gaining popularity among foreign buyers due to better affordability and growing job markets. Brisbane offers subtropical lifestyle with 8.7% annual price growth as of March 2025, while Perth leads capital growth at 14.1% yearly.
University suburbs and areas near CBDs consistently attract international students and skilled migrants, with these locations offering convenient access to education, employment, and cultural communities from their home countries.
Which areas in Australia are currently considered the best for living, rental yields, or capital appreciation—and how do they rank on liveability indexes?
Perth ranks #1 for liveability in 2025 while offering 14.1% annual capital growth and rental yields of 4.0% for houses.
Brisbane combines affordability with strong performance - median house prices of $1,022,026, 8.7% annual growth, and rental yields of 3.6% for houses. The city ranks third in liveability and offers excellent value for foreign investors.
Sydney remains the premium market at $1,691,731 median house price, ranking #2 globally but offering lower yields of 2.9% for houses. Melbourne provides cultural appeal at $1,035,887 median prices but experienced -1.3% growth in the past year.
For pure rental yields, regional towns like Broken Hill and Port Pirie offer up to 11% returns, though with less capital growth potential. Adelaide shows strong momentum with 12.1% annual growth and increasing popularity among families.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Australia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What are the typical property prices by city and region in Australia in 2025, and how have those changed over time?
| City | Median House Price (Mar 2025) | YoY Change |
|---|---|---|
| Sydney | $1,691,731 | +4.0% |
| Melbourne | $1,035,887 | -1.3% |
| Brisbane | $1,022,026 | +8.7% |
| Adelaide | $1,000,202 | +12.1% |
| Canberra | $1,049,067 | -2.3% |
| Perth | $917,706 | +14.1% |
| Hobart | $710,077 | +2.6% |
| Darwin | $659,172 | N/A |
| Regional Average | $659,460 | +7.9% |
What common mistakes do foreigners make when buying property in Australia, and how can you avoid them?
The biggest mistake is not understanding FIRB rules - buying ineligible property can result in forced sale and severe penalties.
Many foreigners underestimate total costs, forgetting to budget for stamp duty surcharges (7-8%), FIRB fees (AUD 6,600+), legal fees, and ongoing taxes. Create a comprehensive budget including all government charges, professional fees, and holding costs.
Skipping due diligence is another critical error - always conduct building and pest inspections, review strata reports for apartments, and verify all property details. Poor market research leads to buying in areas with low rental demand or limited growth potential.
Financing issues catch many unprepared - secure pre-approval before searching, understand that foreign buyers face stricter lending criteria, and prepare for 20-30% deposits. Never attempt DIY conveyancing as foreign ownership rules are complex.
Work exclusively with experienced professionals familiar with foreign buyer regulations, conduct thorough research on local markets and growth corridors, and ensure full compliance with all FIRB requirements.
Can foreigners actually get a mortgage in Australia, what are the interest rates like, and how do you improve your chances of approval?
Yes, foreigners can get Australian mortgages, but options are limited with typically 20-30% deposits required and interest rates 1-2% higher than resident rates.
Major Australian banks often don't lend to non-residents, so you'll need specialist lenders or international banks with Australian operations. As of June 2025, foreign buyers typically pay rates 1-2% above standard rates, which are already elevated due to recent RBA decisions.
To improve approval chances, provide comprehensive income documentation translated into English, maintain a substantial deposit (ideally 30%+), and demonstrate stable employment history. Having an Australian bank account with regular deposits helps establish financial presence.
Use mortgage brokers experienced with foreign buyers who know which lenders are receptive to international applications. Consider getting pre-approval before property searching, and be prepared for additional requirements like international credit checks.
It's something we develop in our Australia property pack.
What are all the taxes, fees, and hidden costs you should expect when buying, holding, and eventually selling property in Australia as a foreigner?
- FIRB application fee: Starting at AUD 6,600, increasing with property value
- Stamp duty with foreign surcharge: Base rate plus 7-8% additional surcharge varying by state
- Legal/conveyancing fees: AUD 1,000-3,000 depending on transaction complexity
- Building and pest inspection: AUD 400-800
- Land tax with foreign surcharge: Annual tax with additional foreign owner levies in most states
- Council rates: Annual fees varying by location and property value
- Strata fees: For apartments, typically AUD 3,000-10,000 annually
- Vacancy fee: Annual fee if property vacant more than 6 months
- Rental income tax: 32.5% from first dollar with no tax-free threshold
- Capital gains tax: Full CGT on sale with no main residence exemption
- Foreign resident CGT withholding: 12.5% of sale price on properties worth $750,000+
- Property management: 5-7% of rental income if leasing the property
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Foreign buyers in Australia face unique challenges with property purchases limited to new dwellings and vacant land, requiring FIRB approval and substantial additional costs.
As we reach mid-2025, the Australian property market offers opportunities in growing cities like Perth and Brisbane, but success requires careful planning, professional guidance, and full compliance with foreign ownership regulations to avoid costly mistakes.
Sources
- Brighten - Buying Property in Australia as a Non-Resident
- Experts for Expats - How to Buy Property in Australia as a Foreigner
- Properstar - Australia Real Estate Guide
- Savings.com.au - Can Foreigners Buy Investment Property
- ATO - Types of Property Foreign Persons Can Buy
- Instarem - Buy Property in Australia as a Foreigner
- CM Law - Buying Property in NSW as a Foreign Person
- Domain - House Price Report March 2025
- CoreLogic - Property Price Predictions 2025
- KPMG - House and Unit Prices Forecast 2025