Buying and owning property in Hobart as a foreigner

Authored by the expert who managed and guided the team behind the Australia Property Pack

Yes, the analysis of Hobart's property market is included in our pack

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Hobart. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Australian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Hobart, Melbourne, and Sydney. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Can foreigners actually buy property in Hobart, and how do the rules differ from locals or other nationalities?

Yes, foreigners can buy property in Hobart, but with significant restrictions that changed dramatically in April 2025.

Non-resident foreigners can only purchase new residential dwellings, off-plan properties, or vacant land that must be developed within four years. Established residential properties are completely banned for foreign buyers until March 2027. This represents a major shift from previous years when foreigners could buy any type of residential property.

The rules apply equally to all foreign nationalities - there are no preferential treatments for citizens of specific countries. However, the restrictions vary based on your residency status in Australia. Non-residents face the strictest limitations, while temporary residents can purchase one established home to live in (but must sell within three months if leaving Australia).

All foreign buyers, regardless of nationality or residency status, must obtain Foreign Investment Review Board (FIRB) approval before purchase. The only exception is if you're buying jointly with an Australian or New Zealand citizen spouse.

It's something we develop in our Australia property pack.

Do I need a visa, residency, or special permit to purchase real estate in Tasmania as a non-resident?

No Australian visa or residency is required to purchase property in Tasmania as a foreigner.

However, FIRB approval is mandatory for all non-resident foreigners, regardless of their visa status or nationality. This is not a residency permit but rather an investment approval that costs approximately AUD 5,700 for properties under AUD 1 million and takes about 30 days to process.

It's crucial to understand that buying property in Hobart does not grant you any visa rights, residency status, or pathway to permanent residence in Australia. Property ownership and immigration are completely separate processes under Australian law.

Temporary residents (those already holding valid Australian visas) have slightly different rules - they can purchase one established home to live in but must sell it within three months if they leave Australia permanently.

Do I need to be physically present in Australia to complete the purchase, or can it be done remotely?

The entire property purchase process can be completed remotely without any physical presence required in Australia.

You can handle all aspects digitally including FIRB application submission online, opening Australian bank accounts remotely, securing financing through online applications, conducting virtual property inspections, signing contracts electronically, and completing settlement through digital banking transfers.

Many buyers successfully use virtual tours, video calls with agents, drone footage, and detailed property reports to make informed decisions without visiting Australia. Legal and conveyancing services can also be managed entirely through digital communication and document sharing platforms.

However, if you're planning to secure a mortgage as a non-resident, some banks may require video calls or additional verification processes, but physical presence is still not mandatory.

What is the full step-by-step process for foreigners to buy property, and which documents are required at each stage?

Step	Process	Required Documents
1. Eligibility Check	Confirm property type is allowed (new/off-plan/vacant land)	Property details, development approval
2. FIRB Application	Submit online application (30 days processing)	Passport, proof of funds, purchase contract, identification
3. Banking Setup	Open Australian bank account	Passport, address verification, income proof
4. Finance Approval	Secure pre-approval if needed	Income statements, credit history, 20-30% deposit proof
5. Property Selection	Choose property, make conditional offer	FIRB approval certificate, finance pre-approval
6. Legal Services	Engage conveyancer/lawyer	Power of attorney (if remote), identification
7. Due Diligence	Building and pest inspections	Inspection reports, contract review
8. Settlement	Final payment and title transfer	Settlement statement, final payment confirmation
9. Registration	Property registration and compliance	Title documents, vacancy return lodgment

Is it mandatory to hire a lawyer or conveyancer, and what exactly do they handle in the transaction?

While not legally mandatory, hiring a conveyancer or lawyer is highly recommended and practically necessary for foreign buyers in Hobart.

Conveyancers and lawyers handle critical aspects including contract review and negotiations, title searches and property history checks, FIRB compliance verification, settlement coordination and fund transfers, property registration with land titles office, and ongoing compliance with foreign ownership obligations including annual vacancy returns.

For foreign buyers, legal professionals provide additional services like managing overseas documentation requirements, ensuring compliance with Australian Consumer Law, coordinating with international banks and fund transfers, handling power of attorney arrangements for remote purchases, and providing guidance on tax obligations and reporting requirements.

Legal fees typically range from AUD 1,000 to AUD 3,000, but this investment protects against costly mistakes that could result in FIRB penalties, forced property sales, or legal complications that far exceed these professional fees.

What are the taxes, fees, and hidden costs involved in buying, owning, renting out, and eventually reselling property as a foreigner?

1. **Purchase Costs:** - FIRB application fee: AUD 4,000-6,600+ per property - Stamp duty surcharge: Additional 1.5% for foreigners - Legal/conveyancing fees: AUD 1,000-3,000 - Building and pest inspections: AUD 500-1,500 - Registration and title transfer fees: AUD 200-5002. **Ongoing Ownership Costs:** - Annual land tax surcharge: Additional 0.5% for foreigners - Annual vacancy fee: Federal charge if property unoccupied >6 months - Council rates: AUD 1,500-4,000 annually - Insurance: AUD 800-2,500 annually - Body corporate fees (apartments): AUD 2,000-8,000 annually3. **Rental Income Costs:** - Property management: 5-8% of rental income - Income tax on rental income: Progressive rates (higher for non-residents) - Repairs and maintenance: Budget 1-2% of property value annually4. **Sale Costs:** - Real estate agent commission: 2-3% of sale price - Capital gains tax: Full tax liability with no main residence exemption - Legal fees for sale: AUD 800-2,000 - Marketing and advertising costs: AUD 1,000-5,0005. **Compliance Costs:** - Annual tax return preparation: AUD 500-2,000 - FIRB annual compliance reporting - Ongoing legal advice as needed

Are mortgages actually available to foreigners in Tasmania, what are the typical interest rates and conditions, and what tips can help improve approval chances?

Mortgages are available to foreigners in Tasmania but with significantly stricter conditions than those offered to Australian residents.

As of September 2025, non-resident foreigners typically face interest rates of 6.5-9%, compared to 5.5-7% for residents. Most lenders require deposits of 20-30% minimum, with some requiring up to 40% for non-residents. Loan-to-value ratios are capped at 70-80% maximum, and most loans are limited to principal and interest payments.

Major lenders like Commonwealth Bank, ANZ, and Westpac offer foreign buyer programs, but with limited loan amounts and stricter serviceability criteria. Many banks require borrowers to have established credit history in Australia or maintain minimum account balances.

To improve approval chances, maintain strong credit history in your home country, provide comprehensive income documentation including tax returns and employment letters, offer larger deposits (30%+ significantly improves chances), use mortgage brokers specializing in foreign buyers, consider having an Australian guarantor if possible, and maintain Australian bank accounts for several months before applying.

How do property prices break down by Hobart city center, surrounding suburbs, and the broader Tasmania region?

Hobart property prices vary significantly by location, with new builds (the only option for non-resident foreigners) commanding premium prices across all areas.

Hobart CBD features the highest prices with new apartments ranging from AUD 900,000 to AUD 1,300,000 as of mid-2025. These properties offer waterfront views, proximity to business districts, and strong rental demand from professionals and tourists.

Inner suburbs like Battery Point and Sandy Bay offer new apartments and townhouses from AUD 700,000 to AUD 1,100,000. These areas combine heritage charm with modern amenities and are popular with both investors and owner-occupiers.

Middle and outer suburbs including Kingston, Moonah, and Glenorchy provide more affordable options with new homes and townhouses ranging from AUD 500,000 to AUD 850,000. These areas offer better value for money and strong growth potential.

Broader Tasmania regions like Launceston and Devonport offer new builds from AUD 400,000 to AUD 700,000, providing entry-level investment opportunities with lower prices but also lower rental yields and capital growth prospects.

Which areas are most popular with foreigners, and which suburbs score highest on liveability, rental yield, capital appreciation forecasts, and tourism demand?

Suburb	Foreign Popularity	Rental Yield	Growth Forecast	Tourism Demand
Hobart CBD	Very High	5.5-6.5%	Strong	Excellent (Airbnb)
Battery Point	High	4.5-5.5%	Very Strong	Excellent (Heritage tourism)
Sandy Bay	High	4.8-5.8%	Very Strong	Good (University area)
North Hobart	Medium-High	5.2-6.2%	Strong	Good (Arts district)
Kingston	Medium	5.0-6.0%	Strong	Medium (Family area)
Moonah	Medium	5.5-6.5%	Strong	Medium (Transport hub)
East Hobart	Medium	5.0-5.8%	Good	Medium (Residential)

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 does the latest data say about gross rental yields, average rental income, and growth forecasts for Hobart compared to other Australian cities?

Hobart leads Australian capital cities in rental yields as of mid-2025, with gross rental yields ranging from 4.2% to 6.5% for new apartments and townhouses.

Average rental income in Hobart CBD and inner suburbs ranges from AUD 520 to AUD 850 per week, with new apartments commanding premium rents due to limited supply and strong demand from professionals, students, and tourists. Outer suburbs typically achieve AUD 400-600 per week for new homes and townhouses.

Growth forecasts for 2025-2027 position Hobart as a leading performer among Australian cities, with property values expected to grow 8-15% annually due to severe supply constraints, population growth, and infrastructure investment. Rental growth is projected at 6-10% annually, driven by low vacancy rates (currently below 1%) and limited new supply.

Compared to other capitals, Hobart offers superior rental yields (Sydney 3-4%, Melbourne 3.5-4.5%, Brisbane 4-5%) while maintaining strong capital growth potential. The city's compact size, lifestyle appeal, and growing economy make it attractive to both domestic and international investors.

It's something we develop in our Australia property pack.

What fiscal implications do I face as a foreign owner in terms of income tax, capital gains tax, and double-tax agreements with my home country?

Foreign property owners in Hobart face comprehensive Australian tax obligations that differ significantly from those of residents.

Rental income is subject to Australian income tax at progressive rates, but non-residents receive no tax-free threshold, meaning all income is taxed from the first dollar earned. Tax rates start at 32.5% for non-residents on income up to AUD 120,000, compared to 0% for residents on the first AUD 18,200. You must lodge annual Australian tax returns regardless of whether the property is rented or vacant.

Capital gains tax applies to the full gain when selling property, with no main residence exemption available to foreign owners. The tax is calculated as part of your total income and taxed at marginal rates. Foreign residents may face additional withholding tax of 12.5% on the sale price, which can be credited against final tax liability.

Australia has double-tax agreements with over 40 countries, which may provide relief from dual taxation. However, you'll need to navigate both Australian tax obligations and your home country's tax requirements. Many countries tax worldwide income, so you may face tax in both jurisdictions, though credits are typically available to prevent double taxation.

Annual compliance includes lodging Australian tax returns, reporting foreign property ownership to your home country's tax authority if required, maintaining detailed records of all income and expenses, and potentially paying provisional tax on projected rental income.

What are the classic mistakes and pitfalls foreigners make when buying property in Hobart, and how can they be avoided?

1. **Buying established dwellings:** The biggest mistake since April 2025 is attempting to purchase established properties, which are now completely banned for non-resident foreigners. Always verify the property is new, off-plan, or vacant land before proceeding.2. **Proceeding without FIRB approval:** Signing contracts or paying deposits before securing FIRB approval can result in penalties, forced sales, and financial losses. Always apply for and receive FIRB approval before making any commitments.3. **Underestimating additional costs:** Many foreigners budget only for the purchase price and miss stamp duty surcharges (1.5%), annual land tax surcharges (0.5%), FIRB fees (AUD 5,700+), and ongoing compliance costs that can add 5-8% to the total investment cost.4. **Inadequate mortgage preparation:** Assuming mortgage availability and conditions will match home country standards leads to disappointment. Prepare for 20-30% deposits, higher interest rates, and limited lender options.5. **Misunderstanding residency implications:** Believing property purchase grants visa rights or residency status is a common misconception that can affect migration planning and tax obligations.6. **Skipping professional advice:** Attempting DIY purchases without local conveyancers, tax advisors, or property professionals often results in compliance failures, overpaying, or choosing poor locations.7. **Ignoring vacancy obligations:** Failing to understand and comply with annual vacancy reporting requirements can trigger federal vacancy fees and FIRB compliance issues.

It's something we develop in our Australia property pack.

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.

Sources

1. Wise - Non-resident property purchase guide
2. Property Buyer - Foreign investment rules 2025
3. Australian Tax Office - Property types for foreign buyers
4. BambooRoutes - Rules for foreigners in Australia
5. Britton Time - Buying a house in Australia guide
6. Visa Envoy - Property for temporary residents
7. BambooRoutes - Australia real estate for foreigners
8. Odin Mortgage - Property and permanent residency
9. Rise Property Buyers - Remote property purchase
10. BDO - Tax rules for foreign property ownership