How to buy a house in Australia?

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

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 Australia. 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 Sydney, Melbourne, and Brisbane. 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.

What types of properties are foreigners actually allowed to buy in Australia?

Foreigners can purchase new residential properties, off-the-plan developments, vacant land with development obligations, and properties earmarked for redevelopment that will increase housing stock.

As of September 2025, the Foreign Investment Review Board (FIRB) prohibits non-residents from buying established homes, which are properties that have been lived in previously. The main categories available to foreign buyers include new or near-new dwellings that have never been occupied or have been occupied for less than 12 months total.

Vacant residential land is accessible to foreigners, but buyers must commence construction of a dwelling within four years and provide proof of completion. Off-the-plan properties, which are part of new developments and remain unoccupied before settlement, represent another viable option for international investors.

Properties designated for redevelopment are permitted if the buyer intends to demolish existing structures and increase the total housing stock, such as replacing a single home with multiple apartments. Commercial property, agricultural land, and non-residential assets are also available but require specific notification and approval processes through FIRB.

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

Can buying a property lead to permanent residency or citizenship in Australia?

Buying property in Australia does not provide a pathway to permanent residency or citizenship, and there is no direct property-for-residency program available to foreign investors.

This represents a significant difference from some other countries that offer golden visa or investor visa programs tied to real estate purchases. Australia's immigration system requires applicants to qualify for permanent residency through skilled migration pathways, business innovation visas, or other active investment routes that involve more than passive property ownership.

The Australian government has deliberately separated property investment from immigration benefits, viewing passive real estate investment as insufficient for residency qualification. Foreign property buyers must pursue separate immigration channels if they wish to obtain permanent residency or eventually become Australian citizens.

Investors interested in residency should explore business innovation and investment visas, skilled migration programs, or employer-sponsored visas, which require active business involvement, specific skills, or substantial business investments beyond simple property purchases.

Where do most foreigners usually buy property in Australia and why?

Victoria (Melbourne), Queensland (Brisbane, Gold Coast, Sunshine Coast), and New South Wales (Sydney) account for approximately 75% of all foreign property purchases, with Queensland recently becoming the most active state for international buyers.

Queensland has emerged as particularly attractive due to its coastal lifestyle appeal, relatively affordable property prices compared to Sydney, and strong rental yields in tourist areas like the Gold Coast and Sunshine Coast. Brisbane's growth as a major commercial center has also attracted significant foreign investment in new apartment developments.

Melbourne continues to draw foreign buyers due to its reputation for lifestyle, culture, and education, with many international students and families purchasing near universities. The city's consistent population growth and strong rental demand make it attractive for investment purposes.

Sydney remains popular despite higher prices, primarily due to its status as Australia's largest city, strong employment market, and international connectivity. However, the high cost of entry has led some foreign buyers to shift focus to Brisbane and Melbourne markets.

The university presence in these major cities creates additional demand from international student families and education-focused investors seeking properties near campuses with strong rental potential.

How does the buying process in Australia compare to Western countries—is it considered easy or more complex?

Australia's property buying process is similar to the UK, Canada, or US but involves additional compliance requirements that make it more bureaucratic for foreign buyers.

Aspect	Australia	Comparison to Other Western Countries
Legal System	Robust, common law based	Similar to UK, Canada, US
Foreign Buyer Requirements	Mandatory FIRB approval	More restrictive than most
Property Types Available	Limited to new/off-the-plan	More restrictive than US/Canada
Additional Taxes	Foreign buyer surcharge (7-8%)	Higher than most countries
Settlement Process	Conveyancing required	Similar to UK system
Timeframe	4-12 weeks typical	Similar to other countries
Legal Protections	Strong buyer protections	Comparable to other Western countries

What are the exact step-by-step stages to buying a house in Australia?

The Australian property purchase process follows seven distinct stages, starting with mandatory FIRB approval before any binding agreements.

1. **FIRB Application and Approval**: Submit Foreign Investment Review Board application with required fees before signing any contracts. This typically takes 2-4 weeks and costs AU$14,100+ for properties under AU$1 million.2. **Property Selection and Due Diligence**: Choose from eligible property types (new, off-the-plan, or vacant land) and conduct building inspections, pest reports, and title searches through qualified professionals.3. **Contract Signing**: Execute the Contract of Sale with a FIRB approval clause, ensuring all terms are understood and reviewed by your legal representative.4. **Deposit Payment**: Transfer the deposit, typically 10% of the purchase price, to the vendor's solicitor's trust account or designated holding account.5. **Finance Arrangement**: Secure mortgage pre-approval or provide proof of funds for cash purchases, including any additional documentation required for non-resident lending.6. **Conveyancing Process**: Engage a qualified solicitor or conveyancer for title searches, contract reviews, and preparation of settlement documents.7. **Settlement and Transfer**: Complete final payment of the balance, pay applicable taxes and fees, and receive the property title transfer completing legal ownership.

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

Which documents are mandatory, and which ones are optional, during the purchase process?

Several documents are legally required for foreign property purchases in Australia, while others are optional but highly recommended for protection and smooth processing.

**Mandatory Documents:**- Valid passport or government-issued identification- FIRB approval documentation showing permission to purchase- Signed Contract of Sale with all terms and conditions- Proof of funds (bank statements) or mortgage pre-approval letter- Conveyancing documents prepared by qualified legal professional- Property title transfer documents at settlement**Optional but Recommended Documents:**- Building inspection report identifying structural issues- Pest and termite inspection report- Power of Attorney if completing purchase remotely- Australian Tax File Number for rental income purposes- Insurance policies (building and contents)- Strata reports for apartment purchases

The building and pest inspection reports, while optional, are strongly recommended as they can reveal costly problems that might not be apparent during property viewings. These reports typically cost AU$400-800 but can save thousands in unexpected repairs.

A Power of Attorney becomes essential for buyers completing the purchase from overseas, allowing a trusted representative to sign documents and attend settlement on their behalf.

Can you complete the whole process without being physically in the country?

Yes, the entire Australian property purchase process can be completed remotely using digital communication, Power of Attorney, and professional representatives.

Modern technology and established legal frameworks make remote property purchases practical and secure. Digital document signing, video conference meetings, and electronic fund transfers allow overseas buyers to manage all aspects of the transaction without travelling to Australia.

A Power of Attorney arrangement with a trusted representative or legal professional in Australia becomes crucial for remote purchases. This person can attend property inspections, sign documents at settlement, and handle any in-person requirements during the process.

Remote settlement agents and solicitors specialize in overseas buyer transactions, providing video conference consultations, digital document review, and coordinated settlement services. Many developers of off-the-plan properties also offer virtual property tours and online sales processes designed for international buyers.

Electronic fund transfers through established banking channels ensure secure payment processing, while digital contract execution meets legal requirements for property transfers. The main requirement is ensuring proper legal representation and Power of Attorney documentation is established early in the process.

What are the typical mistakes and pitfalls foreigners make when buying property in Australia?

The most common mistake foreigners make is attempting to purchase property without securing FIRB approval first, which can result in forced resale and substantial penalties.

Many foreign buyers underestimate the total cost of ownership, particularly ongoing taxes like land tax surcharges for non-residents and higher stamp duty rates. These additional costs can add 10-15% to the initial purchase price and create ongoing financial obligations that weren't anticipated.

Inadequate legal due diligence represents another significant pitfall, with buyers sometimes skipping proper title searches, building inspections, or contract reviews. This can lead to unexpected liabilities, structural problems, or legal disputes that could have been avoided with proper professional advice.

Currency fluctuation risks often catch international buyers off-guard, particularly those who don't hedge their currency exposure during the extended settlement periods common with off-the-plan purchases. Exchange rate movements can significantly impact the final cost in the buyer's home currency.

Relying on unlicensed or unregulated agents is another common mistake, with some buyers falling victim to fraudulent schemes or receiving poor advice about property values and market conditions. Always verify agent licenses and credentials before engaging their services.

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 reliable are real estate agents, and will the legal system genuinely protect the buyer?

Most Australian real estate agents are licensed and regulated by state-based authorities, but quality and service levels vary significantly across the industry.

Each Australian state requires real estate agents to hold valid licenses, maintain professional indemnity insurance, and follow specific conduct standards. However, the quality of service, market knowledge, and ethical standards can differ substantially between individual agents and agencies.

Australia's legal property system provides strong protections for buyers through established common law principles, mandatory disclosure requirements, and cooling-off periods in most states. The conveyancing system ensures independent legal representation and thorough due diligence processes.

Consumer protection agencies in each state handle disputes and maintain complaint registers about licensed agents, providing recourse for buyers who experience problems. However, the best protection comes from engaging reputable, experienced agents with strong track records in foreign buyer transactions.

Hiring a qualified solicitor or conveyancer remains crucial regardless of agent quality, as these professionals provide independent advice and ensure all legal requirements are met. The legal system's protections are most effective when buyers engage proper professional representation throughout the process.

What precautions should you take before signing anything or transferring money?

Never sign contracts without confirmed FIRB approval and comprehensive legal review by a qualified Australian solicitor or conveyancer.

Independent building and pest inspections should be completed before committing to any purchase, particularly for new properties where construction defects might not be immediately apparent. These professional reports can identify costly problems and provide negotiating leverage or grounds for contract withdrawal.

Use secure escrow services or solicitor trust accounts for all money transfers rather than sending funds directly to sellers or agents. This provides protection against fraud and ensures funds are properly held until settlement conditions are met.

Verify the identity and licensing of all professionals involved in the transaction, including agents, solicitors, and building inspectors. Check state licensing databases and professional association memberships to ensure legitimacy.

Review all contract terms carefully, particularly clauses related to settlement dates, penalty provisions, and conditions precedent. Ensure you understand your obligations and rights before signing any binding agreements.

How long does the entire process usually take, from offer to ownership?

The typical timeframe from offer acceptance to property ownership is 4-12 weeks, depending on FIRB approval processing and financing arrangements.

FIRB approval typically takes 2-4 weeks for standard residential applications, though more complex cases or higher-value properties may require additional processing time. This represents the most variable component of the timeline and cannot be accelerated significantly.

Off-the-plan purchases may have extended settlement periods of 12-24 months from contract signing, as construction must be completed before legal settlement can occur. These longer timeframes provide more planning time but also create currency and market risk exposure.

Financing approval for foreign buyers often takes 3-6 weeks due to additional documentation requirements and more detailed assessment processes used by Australian lenders. Cash purchases can proceed more quickly once FIRB approval is obtained.

Conveyancing and legal processes typically require 2-3 weeks for document preparation, searches, and settlement coordination. This timeline assumes no significant title issues or contract complications arise during the process.

What are all the costs, taxes, and fees involved—broken down in detail?

Property purchase costs for foreigners include FIRB fees, stamp duty with foreign buyer surcharges, legal fees, and ongoing tax obligations that can add 15-25% to the purchase price.

Cost Category	Typical Amount	When Payable
FIRB Application Fee	AU$14,100+ (varies by property value)	Before contract signing
Stamp Duty (including foreign surcharge)	7-8% of purchase price	At settlement
Legal/Conveyancing Fees	AU$1,000-3,000+	At settlement
Building/Pest Inspections	AU$400-800	Before contract signing
Mortgage Application Fees	AU$200-1,000+	During finance approval
Loan Establishment Fees	AU$500-900+	At loan settlement
Land Tax (non-resident surcharge)	Varies by state, 2-4% annually	Annually
Settlement/Title Transfer	AU$100-500+	At settlement

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

Can you buy a house in cash, or do most people rely on financing?

Cash purchases are allowed and common among foreign buyers due to stricter lending standards and higher interest rates for non-resident mortgages.

Many international buyers choose cash purchases to avoid the complexity and additional costs associated with foreign buyer mortgage applications. Cash transactions also provide stronger negotiating positions and faster settlement capabilities, particularly important in competitive markets.

Financing is available but involves more stringent requirements including higher deposit amounts (typically 30-40% minimum), additional documentation of overseas income, and higher interest rates than domestic borrowers pay. These factors often make cash purchases more practical for foreign investors.

The choice between cash and financing often depends on the buyer's overall investment strategy, tax considerations in their home country, and access to competitive financing rates. Some buyers use financing even when cash is available to maintain liquidity for other investments.

Cash purchases eliminate currency risk associated with loan repayments in Australian dollars and avoid ongoing lending compliance requirements that can complicate property management from overseas.

Is mortgage financing available to foreigners, and if so, what are the usual rates, conditions, and tips to secure one?

Mortgage financing is available to foreign buyers but comes with higher interest rates (typically 1-2% above domestic rates), lower loan-to-value ratios (60-70% maximum), and extensive documentation requirements.

As of September 2025, foreign buyers can expect interest rates of 7-9% for investment properties, compared to 5-7% for Australian residents. The higher rates reflect additional risk assessments and compliance costs associated with non-resident lending.

Maximum loan amounts are typically limited to 60-70% of property value, requiring substantial cash deposits of 30-40% plus additional funds for taxes and fees. Some lenders restrict loans to certain property types or locations, particularly favoring established areas with strong rental markets.

**Key Requirements for Foreign Buyer Mortgages:**- Minimum 30% deposit plus costs- Verified overseas income documentation- Australian bank account establishment- Professional income assessment and translation- Comprehensive asset and liability statements

Working with mortgage brokers experienced in foreign buyer applications can significantly improve approval chances and access to competitive rates. These specialists understand which lenders are most active in non-resident lending and can navigate complex application requirements.

High-value properties or complex financial circumstances particularly benefit from professional mortgage broker assistance, as they can access wholesale lending rates and specialized loan products not available through retail channels.

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. Australian Taxation Office - Types of Property a Foreign Person Can Buy
2. Property Tax Specialists - Non-Resident Buying Guide
3. Australian Taxation Office - Foreign Person Property Buying
4. Taxes for Expats - Foreign Property Purchase Guide
5. Odin Mortgage - Property Purchase and Permanent Residency
6. Domain - Top Australian Locations for Foreign Buyers
7. Properstar - Australia Real Estate Guide
8. Different - Property Investment Guide for Foreigners
9. Department of Home Affairs - Housing Settlement Information
10. Foreign Investment Review Board - Residential Land Investment Guide