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
Buying property in Australia as a foreigner in 2026 is possible, but you need to understand the restrictions, scams, and hidden costs before you sign anything.
We constantly update this blog post to reflect the latest regulations, fee changes, and scam trends affecting foreign buyers in Australia.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Australia.
How risky is buying property in Australia as a foreigner in 2026?
Can foreigners legally own properties in Australia in 2026?
As of early 2026, foreigners can legally buy property in Australia, but what they can actually purchase is heavily restricted by the temporary ban on established dwellings running from April 2025 to March 2027.
The main restriction for foreign buyers in Australia is that you cannot purchase an "established dwelling" (any previously occupied home) during the ban period, which means most existing houses and apartments listed on property portals are off-limits unless a very narrow exception applies.
Because direct ownership of established dwellings is currently banned, most foreign buyers in Australia are pushed toward new dwellings, off-the-plan apartments, or vacant residential land with a requirement to build within four years.
Some foreigners attempt to purchase through Australian citizen spouses or family trusts, but the Australian Taxation Office (ATO) actively monitors these arrangements, and using structures to circumvent the foreign investment rules can result in serious penalties including forced sales and fines.
If you're interested, we go much more into details about the foreign ownership rights in Australia here.
What buyer rights do foreigners actually have in Australia in 2026?
As of early 2026, foreign buyers who purchase property legally in Australia (with correct FIRB approval and proper settlement) have strong property rights because Australia's Torrens title system makes the land registry the official source of truth for ownership.
If a seller breaches a contract in Australia, foreign buyers can enforce their rights through state courts with outcomes that are generally reliable, since Australia ranks 11th globally in the World Justice Project's Rule of Law Index for 2025, which measures enforcement quality and judicial independence.
The most common buyer right that foreigners mistakenly assume they have in Australia is the ability to recover money quickly after a payment redirection scam, because while contract enforcement is strong, funds sent to scammers typically move offshore within hours and are rarely recovered even with a court judgment.
How strong is contract enforcement in Australia right now?
Contract enforcement for real estate transactions in Australia is strong compared to most countries, with Australia ranking in the top 15 globally for rule of law, which is better than countries like France, Spain, and the United States on key enforcement metrics.
The main weakness foreign buyers should understand in Australia is that strong courts do not mean fast outcomes or easy recovery, so if you send money to a scammer before settlement or get tricked by a fake seller, your legal rights may not help you recover funds that have already left the country.
By the way, we detail all the documents you need and what they mean in our property pack covering Australia.
Buying real estate in Australia can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Which scams target foreign buyers in Australia right now?
Are scams against foreigners common in Australia right now?
Scams targeting property buyers in Australia are common, with Australians reporting nearly $260 million in losses to scams in the first nine months of 2025 alone, and property transactions are attractive targets because the amounts involved are large and time-pressured.
The type of property transaction most frequently targeted by scammers in Australia is the settlement payment stage, where criminals intercept communications and send fake bank details that redirect deposits or final payments to offshore accounts.
The profile of foreign buyer most commonly targeted in Australia is someone purchasing remotely (often from Asia, the Middle East, or Europe), who is unfamiliar with Australian settlement processes and relies heavily on email communication with agents and conveyancers.
The single biggest warning sign that a deal may be a scam in Australia is any last-minute change to bank account details sent by email, especially if accompanied by urgency or pressure to transfer funds before verification.
What are the top three scams foreigners face in Australia right now?
The top three scams foreigners most commonly face when buying property in Australia are payment redirection scams (fake bank details sent before settlement), fake rental or sale listings that collect deposits for properties the scammer does not own, and "property investment seminar" schemes that pressure buyers into overpriced or non-existent developments.
The most common scam in Australia (payment redirection) typically unfolds like this: scammers monitor or hack email accounts of agents, solicitors, or conveyancers, then send an email that looks legitimate with "updated" bank details just before a deposit or settlement payment is due, and the buyer sends hundreds of thousands of dollars to an account controlled by criminals who move the money offshore within hours.
The single most effective way to protect yourself from these three scams in Australia is to verify all bank details by phone using a number you found independently (not from the email), never pay deposits without physically inspecting the property or having your solicitor confirm the listing is genuine, and avoid any "investment opportunity" that pressures you to commit quickly or attend paid seminars.
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.
How do I verify the seller and ownership in Australia without getting fooled?
How do I confirm the seller is the real owner in Australia?
The standard verification process to confirm the seller is the real owner in Australia is to order a title search through the relevant state land registry, which shows the registered proprietor, any mortgages, caveats, and other interests recorded against the property.
The official document foreigners should check in Australia is the Certificate of Title (or title search result) from the state registry: NSW Land Registry Services for New South Wales, Land Victoria for Victoria, or the Queensland Titles Registry for Queensland.
The most common trick fake sellers use to appear legitimate in Australia is providing convincing PDF documents (fake contracts, fake title certificates) by email, and this is becoming more common as scammers use sophisticated forgeries that look official but are not verified against the actual registry.
Where do I check liens or mortgages on a property in Australia?
The official registry where you check liens or mortgages on a property in Australia is the state-based land titles office, and you (or your conveyancer) can order a title search that shows all registered interests including mortgages, caveats, and easements.
When checking for liens in Australia, you should request a current title search that shows the registered proprietor, any mortgages (which must be discharged before clean title transfers to you), any caveats (which can indicate disputes or third-party claims), and any easements or covenants that affect how you can use the land.
The type of lien or encumbrance most commonly missed by foreign buyers in Australia is strata-related debt or unpaid body corporate levies in apartment buildings, because these do not always appear on the title search and require a separate strata certificate or owners corporation certificate to uncover.
It's one of the aspects we cover in our our pack about the real estate market in Australia.
How do I spot forged documents in Australia right now?
The most common type of forged document used in property scams in Australia is fake conveyancer or solicitor correspondence with altered bank account details, and this sometimes happens because email accounts get compromised, not because physical documents are forged.
The specific red flags that indicate a document may be forged or part of a scam in Australia include bank details that differ from previous correspondence, slight changes to email addresses (like an extra letter or different domain), urgency or pressure to transfer funds immediately, and any request to keep the transaction "confidential" from other parties.
The official verification method you should use in Australia is to check every critical detail against the state land registry (not against PDFs sent by email), call your conveyancer or solicitor on a phone number you found independently, and confirm bank details verbally before any transfer.
Get the full checklist for your due diligence in Australia
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What "grey-area" practices should I watch for in Australia?
What hidden costs surprise foreigners when buying a property in Australia?
The three most common hidden costs foreigners overlook in Australia are FIRB application fees (starting around A$14,100 / US$9,000 / EUR 8,300 for properties under A$1 million in 2025-2026), foreign buyer stamp duty surcharges (7% to 9% on top of regular stamp duty depending on the state), and annual surcharge land tax in states like NSW and Victoria (up to 4% of land value per year for absentee owners).
The hidden cost most often deliberately concealed by sellers or agents in Australia is the true extent of strata levies and special levies in apartment buildings, and this sometimes happens when agents downplay upcoming major works or building defect rectification costs that will hit buyers after settlement.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Australia.
Are "cash under the table" requests common in Australia right now?
Cash under the table requests in Australian residential property transactions are rare in the formal market because settlement happens through regulated conveyancing systems (like PEXA) and banks, making undeclared payments difficult to hide and easily traceable.
When undeclared payments do occur in Australia, the typical reason sellers give is to reduce their capital gains tax liability or to avoid triggering government reporting thresholds, but this is far less common than in many other countries due to strict anti-money laundering rules.
The legal risks foreigners face if they agree to an undeclared cash payment in Australia include potential prosecution for tax evasion, being complicit in money laundering (which can result in criminal charges), and having the transaction unwound or the property seized if authorities investigate.
Are side agreements used to bypass rules in Australia right now?
Side agreements to bypass official rules in Australian property transactions are uncommon in mainstream residential sales because the conveyancing and settlement system is highly regulated, but they sometimes appear in off-the-plan purchases or new development sales where variations and add-ons can obscure the true price.
The most common type of side agreement used to circumvent regulations in Australia involves arrangements where an Australian citizen or permanent resident purchases a property "on behalf of" a foreign family member to avoid FIRB restrictions, which is explicitly illegal under foreign investment laws.
The legal consequences foreigners face if a side agreement is discovered by Australian authorities include forced sale of the property (divestment order), civil penalties of up to A$313,500 for individuals, and potential criminal charges with imprisonment for serious breaches of foreign investment rules.
We made this infographic to show you how property prices in Australia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
Can I trust real estate agents in Australia in 2026?
Are real estate agents regulated in Australia in 2026?
As of early 2026, real estate agents in Australia are regulated at the state level, meaning each state has its own licensing authority, requirements, and enforcement body that agents must comply with to operate legally.
The official license a legitimate real estate agent should have in Australia depends on the state: in NSW it is a real estate agent licence issued by NSW Fair Trading, in Victoria it is an estate agent's licence from Consumer Affairs Victoria, and in Queensland it is a licence or registration from the Office of Fair Trading Queensland.
Foreigners can verify whether an agent is properly licensed in Australia by checking the public registers maintained by each state regulator, such as the NSW Fair Trading licence check, the Consumer Affairs Victoria public register, or the Queensland Office of Fair Trading licence search.
Please note that we have a list of contacts for you in our property pack about Australia.
What agent fee percentage is normal in Australia in 2026?
As of early 2026, the normal agent fee percentage in Australia ranges from about 1.6% to 3.5% of the sale price, with lower rates in expensive capital cities like Sydney and Melbourne (around 1.8% to 2.5%) and higher rates in regional areas (up to 3.5% or more).
The typical range of agent fee percentages that covers most transactions in Australia is 2% to 2.5% nationally, though this varies significantly by location, property value, and how much you negotiate, since agent commissions are not regulated and are fully negotiable.
In Australia, the seller typically pays the agent fee (commission), not the buyer, so as a foreign buyer you generally do not pay agent commission directly, but you should understand that the seller's agent works for the seller's interests, not yours.
Get the full checklist for your due diligence in Australia
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What due diligence actually prevents disasters in Australia?
What structural inspection is standard in Australia right now?
The standard structural inspection process for property purchases in Australia is to hire a licensed building inspector to conduct a pre-purchase building and pest inspection before you finalize the contract, and this is typically done during the cooling-off period or as a condition of the contract.
A qualified inspector in Australia should check the structural elements including foundations, walls, roof framing, cladding, plumbing, electrical systems (visually), drainage, and any signs of water damage, termite activity, or subsidence.
The type of professional qualified to perform structural inspections in Australia is a licensed building inspector or building consultant, and for pest inspections you need a licensed pest inspector, though many companies offer combined building and pest inspection packages.
The most common structural issues that inspections reveal in Australian properties are water damage and moisture ingress (especially in bathrooms and balconies), termite damage (particularly in older timber-framed houses in Queensland and northern NSW), cracking from soil movement, and roof defects including failing flashings and membranes.
How do I confirm exact boundaries in Australia right now?
The standard process for confirming exact property boundaries in Australia is to obtain a copy of the registered survey plan (also called a deposited plan or strata plan) from the state land registry, which shows the legal dimensions and boundaries of your lot.
The official document that shows the legal boundaries of a property in Australia is the survey plan or deposited plan registered with the state titles office, and this is referenced on your Certificate of Title and can be ordered through NSW Land Registry Services, Land Victoria, or Queensland Titles Registry depending on the state.
The most common boundary dispute that affects foreign buyers in Australia involves shared fences, driveways, or encroachments (like a neighbor's shed or garden built over your boundary), which are often not obvious during a property inspection but become problems after settlement.
The professional you should hire to physically verify boundaries on the ground in Australia is a licensed surveyor, who can place boundary pegs and confirm whether existing fences and structures align with the registered plan.
What defects are commonly hidden in Australia right now?
The top three defects that sellers commonly conceal from buyers in Australia are water ingress issues (leaking balconies, bathrooms, and roofs), building envelope problems (defective cladding, failed waterproof membranes), and strata financial issues (underfunded sinking funds and upcoming special levies for major repairs), and these are common problems especially in apartments built during the 2010s construction boom.
The inspection technique that helps uncover hidden defects in Australia is a combination of a thorough building inspection (including moisture meter readings and thermal imaging where appropriate) and, for apartments, a detailed review of strata records including minutes of owners corporation meetings, defect reports, building insurance claims, and any planned major works.
We have made this infographic to give you a quick and clear snapshot of the property market in Australia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
What insider lessons do foreigners share after buying in Australia?
What do foreigners say they did wrong in Australia right now?
The most common mistake foreigners say they made when buying property in Australia is not understanding the established dwelling ban early enough, which led them to waste time and money pursuing properties they were never legally allowed to purchase under current FIRB rules.
The top three regrets foreigners most frequently mention after buying in Australia are underestimating the total cost of stamp duty surcharges and FIRB fees (which can add 15% or more to the purchase price in states like NSW and Victoria), trusting emailed bank details without phone verification (leading to settlement scam losses), and not getting independent strata or building inspections before committing to apartments.
The single piece of advice experienced foreign buyers most often give to newcomers in Australia is to hire your own conveyancer or solicitor before you do anything else, because they will guide you through FIRB applications, verify title, check for scams, and protect your interests in ways that the selling agent never will.
The mistake foreigners say cost them the most money or caused the most stress in Australia is paying a deposit or settlement funds to the wrong account after receiving fake bank details by email, because this money is almost never recovered once it leaves the country.
What do locals do differently when buying in Australia right now?
The key difference in how locals approach buying property compared to foreigners in Australia is that locals routinely attend multiple auctions and open homes before bidding, which gives them a feel for price guides that are often misleading, while foreigners often rely on listed prices and get caught out by underquoting practices especially in Melbourne and Sydney's inner suburbs like Fitzroy, Newtown, and Paddington.
The verification step locals routinely take that foreigners often skip in Australia is ordering a strata search (for apartments) or Section 32/vendor statement review (in Victoria) before making an offer, because locals know that glossy marketing hides expensive problems like special levies, building defects, or restrictive by-laws.
The local knowledge advantage that helps Australians get better deals is understanding the auction system and its psychology, knowing which suburbs have persistent underquoting problems (like Brunswick and Northcote in Melbourne or Marrickville in Sydney), and having relationships with local conveyancers who can flag risky buildings or developments before you waste time on them.
Don't buy the wrong property, in the wrong area of Australia
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Australia, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Australian Taxation Office (ATO) | It's the Australian Government's official explainer on foreign buyer rules. | We used it to state the current ban window and what foreigners can buy in 2026. We used it to frame realistic purchase options for foreign buyers. |
| FIRB Guidance Note 1 | It's official guidance from Australia's foreign investment regulator. | We used it to describe baseline foreign person rules and approval conditions. We used it to explain what FIRB approvals typically require. |
| ACCC Targeting Scams Report 2024 | It's the national regulator's consolidated scam data across agencies. | We used it to quantify the scam environment in Australia. We used it to keep scam advice grounded in real reporting trends. |
| WA ScamNet | It's an Australian state government consumer guidance page on property scams. | We used it to describe payment redirection scam mechanics. We used it to build practical rules for verifying bank details. |
| NSW Land Registry Services | It's the official land title operator for New South Wales. | We used it to show how ownership is verified via title search. We used it to explain where liens and mortgages appear. |
| Revenue NSW | It's the NSW Government's tax authority for foreign buyer surcharges. | We used it to highlight hidden costs that hit foreigners specifically. We used it to show ongoing land tax surcharge exposure. |
| State Revenue Office Victoria | It's Victoria's official guidance on foreign purchaser duty. | We used it to quantify the extra duty layer for foreign buyers. We used it to stress that state taxes can dwarf legal fees. |
| World Justice Project Rule of Law Index | It's a globally recognized index based on household and expert surveys. | We used it to contextualize contract enforcement quality. We used it as an external check on institutional strength. |
| Consumer Affairs Victoria | It's the Victorian regulator's official page on underquoting. | We used it to explain auction price guide practices. We used it to give steps for what to do if you suspect underquoting. |
| LocalAgentFinder | It aggregates real commission data from agents across Australia. | We used it to provide current average commission rates by state. We used it to show the range of fees buyers can expect. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Australia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.