Authored by the expert who managed and guided the team behind the Australia Property Pack
Yes, the analysis of Sydney's property market is included in our pack
Buying a house as a foreigner in Sydney involves significant restrictions and processes not found in many other Western countries.
As of September 2025, foreign buyers face more hurdles, higher costs, and stricter property limits compared to places like the USA, UK, or Canada, where restrictions are lighter and property options broader.
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 property purchases in Sydney require FIRB approval and are currently limited to new dwellings only, with established properties banned until March 2027.
The complete process typically takes 4-12 weeks and involves additional costs including FIRB fees ranging from AUD 4,000 to over 100,000 plus an 8% foreign buyer surcharge.
| Aspect | Details | Cost/Timeline |
|---|---|---|
| FIRB Approval | Required for all foreign purchases | AUD 4,000-150,000+, 30-90 days |
| Property Types Allowed | New dwellings, off-the-plan, vacant land | No established properties |
| Foreign Buyer Surcharge | NSW additional stamp duty | 8% of property value |
| Mortgage Requirements | 20-30% deposit minimum | Higher interest rates |
| Settlement Timeline | From offer to completion | 4-12 weeks typical |
| Legal/Conveyancing | Mandatory professional assistance | AUD 1,500-2,500 |
| Remote Purchase | Possible via power of attorney | No additional timeline |
Is it actually easy or hard for a foreigner to buy a house in Sydney compared to other Western countries?
Buying property in Sydney as a foreigner is significantly more difficult than in most other Western countries.
Unlike the United States, United Kingdom, or Canada where foreign buyers face minimal restrictions and can purchase most property types, Australia has implemented some of the strictest foreign investment rules among developed nations. The process requires government approval, involves substantial additional fees, and severely limits your property choices.
As of September 2025, the restrictions have become even tighter with established properties completely banned for foreign purchase until March 2027. This means you can only buy new dwellings, off-the-plan properties, or vacant land that must be developed within four years.
The Foreign Investment Review Board (FIRB) approval process alone adds 30-90 days to your timeline and costs between AUD 4,000 to over 100,000 depending on the property value. Additionally, you'll face an 8% foreign buyer surcharge on stamp duty in New South Wales, which doesn't exist in countries like Germany or France.
It's something we develop in our Australia property pack.
What kinds of properties are foreigners allowed to buy and which ones are off-limits?
Foreign property buyers in Sydney face strict limitations on what they can purchase, with the rules becoming even more restrictive in 2025.
Properties you CAN buy:
- New dwellings that have never been sold or occupied before
- Off-the-plan properties purchased directly from developers
- Vacant land with mandatory development within four years
- Some redevelopment projects that significantly increase housing stock
Properties that are OFF-LIMITS:
- All established (secondhand) residential properties from April 2025 to March 2027
- Any previously occupied dwellings, regardless of age
- Investment properties that don't meet the "new dwelling" criteria
- Properties purchased for short-term rental purposes without development
- Rural or agricultural land for non-development purposes
The temporary ban on established dwellings represents a major policy shift designed to prioritize housing availability for Australian residents. This restriction applies to all foreign buyers, including temporary residents and those on skilled worker visas.
If you purchase vacant land, you must begin substantial development within four years or face penalties and potential forced sale of the property.
What is the step-by-step process for purchasing a property in Sydney from start to finish?
The property purchase process in Sydney involves multiple mandatory steps that must be completed in the correct order to avoid legal issues.
| Step | Action Required | Timeline/Cost |
|---|---|---|
| 1. FIRB Approval | Submit online application with required documents | 30-90 days, AUD 4,000-150,000+ |
| 2. Property Selection | Choose from approved property types only | Variable |
| 3. Bank Account Setup | Open Australian bank account (can be done remotely) | 1-2 weeks |
| 4. Legal Representation | Engage qualified solicitor or conveyancer | AUD 1,500-2,500 |
| 5. Contract Signing | Sign purchase contract subject to FIRB approval | 1-2 days |
| 6. Deposit Payment | Pay typically 10% of purchase price | Within 1-3 days |
| 7. Finance Arrangement | Secure mortgage or transfer funds from overseas | 2-6 weeks |
| 8. Contract Exchange | Contracts become legally binding | Once FIRB approved |
| 9. Final Settlement | Pay balance, complete title transfer | 4-12 weeks from exchange |
Can I buy a property without physically being in Australia, and if so, how?
Yes, you can complete an entire property purchase in Sydney without ever setting foot in Australia.
Most Australian banks, real estate agencies, and legal firms are equipped for remote transactions through digital platforms. You can arrange the purchase through power of attorney, video conference calls, and electronic document signing systems that are legally recognized in Australia.
The remote buying process works through several key mechanisms: your solicitor can act as your representative for property inspections and contract negotiations, bank accounts can be opened online with proper identification verification, and FIRB applications can be submitted entirely through their online portal.
You'll need to arrange a power of attorney document that specifically authorizes your Australian-based solicitor to act on your behalf for property transactions. This document must be properly notarized in your home country and may require apostille certification depending on your location.
Digital property inspections through video calls, drone footage, and virtual tours have become standard practice, especially since 2020. However, it's recommended to have an independent building and pest inspection conducted by a qualified professional even if you can't be there personally.
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What documents and paperwork do I need to prepare to legally buy a house?
The documentation requirements for foreign property buyers in Sydney are extensive and must be prepared well in advance of your purchase.
Essential Identity Documents:
- Original valid passport (not a copy)
- Secondary photo identification (driver's license or national ID card)
- Certified copies of all identification documents
- Proof of current residential address in your home country
Financial Documentation:
- Bank statements for the past 6 months showing available funds
- Proof of income from employment or business
- Tax returns for the previous 2 years
- Evidence of assets and liabilities
- Currency exchange records if transferring funds internationally
Australian-Specific Requirements:
- FIRB approval notification (must be obtained before settlement)
- Australian bank account details and statements
- Tax File Number application (optional but recommended)
If you're purchasing through a company structure, additional corporate documents are required including company registration certificates, authorized signatory identification, and corporate bank account details.
All foreign documents may need to be translated into English by a certified translator and potentially apostilled depending on your country of origin. It's something we develop in our Australia property pack.
What fees, taxes, and additional costs should I expect, with a full breakdown?
The total cost of buying property in Sydney as a foreigner extends far beyond the purchase price, with multiple fees and taxes that can add 15-25% to your total investment.
| Fee/Tax Type | Amount/Rate | When Payable |
|---|---|---|
| FIRB Application Fee | AUD 4,000 for properties under $1M, up to $150,000+ for higher values | Before purchase |
| Stamp Duty (NSW) | 4-5.5% of property value (varies by price) | At settlement |
| Foreign Buyer Surcharge | Additional 8% of property value | At settlement |
| Legal/Conveyancing Fees | AUD 1,500-2,500 | During process |
| Building/Pest Inspection | AUD 400-1,000 | Before exchange |
| Mortgage Application Fees | AUD 500-2,000 (if financing) | During approval |
| Annual Land Tax | 0.3-2% annually plus 2% foreign surcharge | Ongoing |
| Property Insurance | AUD 1,000-3,000 annually | Before settlement |
| Council Rates | AUD 1,500-4,000 annually | Ongoing |
Can I buy a house in cash, and are there advantages or disadvantages to doing that?
Cash purchases are completely legal and often preferred by sellers in Sydney's competitive property market.
The primary advantage of cash buying is speed - you can complete settlement within 4-6 weeks instead of the typical 8-12 weeks required for mortgage approval. This gives you significant competitive advantage in multiple offer situations, as sellers prefer the certainty of cash buyers over those dependent on financing approval.
However, cash purchases require substantial upfront capital and may trigger additional scrutiny under Australia's anti-money laundering laws. You'll need to provide clear documentation showing the source of funds, especially for large purchases over AUD 1 million.
Cash buyers still face the same FIRB approval requirements and foreign buyer surcharges, so you won't save on government fees. Additionally, tying up large amounts of capital in Sydney real estate means missing potential returns from other investments or facing liquidity constraints for other opportunities.
From a tax perspective, cash purchases may result in higher ongoing costs since you can't claim mortgage interest as a tax deduction if you're treating the property as an investment.
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.
Is it possible for foreigners to get a mortgage, what are the typical interest rates and conditions, and what tips can help improve approval chances?
Foreign buyers can obtain mortgages in Australia, but face stricter criteria and higher costs compared to residents.
Most Australian lenders require foreign buyers to provide a minimum 20-30% deposit, compared to 10-20% for residents. Interest rates are typically 0.5-1.5% higher than standard residential rates, with current foreign buyer rates ranging from 6.5-8.5% as of September 2025.
Major banks like Commonwealth Bank, Westpac, ANZ, and NAB offer foreign buyer programs, but each has different eligibility criteria. Some smaller lenders don't offer foreign buyer loans at all, limiting your options significantly.
Tips to improve mortgage approval chances:
- Maintain a substantial deposit (30% or more increases approval odds)
- Provide comprehensive income documentation for the past 2 years
- Use a mortgage broker specialized in foreign buyer loans
- Consider international banks with Australian operations in your home country
- Demonstrate stable employment history and income sources
- Obtain pre-approval before making property offers
- Consider having an Australian-based guarantor if possible
Loan terms are typically limited to 25-30 years, and some lenders require loan-to-value ratios below 70% for foreign buyers. The application process can take 6-10 weeks, significantly longer than domestic applications.
How long does the buying process usually take from making an offer to final settlement?
The complete property purchase process in Sydney typically takes 4-12 weeks from accepted offer to final settlement, but can extend longer due to FIRB approval requirements.
The timeline breaks down into distinct phases: FIRB approval (if not obtained earlier) takes 30-90 days, mortgage approval requires 2-6 weeks for foreign buyers, contract exchange occurs once FIRB approval is confirmed, and final settlement happens 4-6 weeks after exchange.
For cash buyers with pre-approved FIRB status, the process can be completed in as little as 4-6 weeks. However, first-time foreign buyers should expect 10-16 weeks total from initial offer to settlement completion.
Delays commonly occur due to incomplete FIRB applications, mortgage approval complexities for foreign buyers, property title issues, or building inspection problems. Off-the-plan purchases have longer timelines since settlement occurs when construction completes, typically 12-24 months after initial purchase.
To expedite the process, obtain FIRB pre-approval before house hunting, arrange mortgage pre-approval, engage your solicitor early, and ensure all documentation is complete and properly certified before beginning your search.
Are real estate agents in Sydney generally reliable, and what should I watch out for when dealing with them?
Sydney real estate agents must be licensed and regulated, making the industry generally professional, but foreign buyers should remain vigilant about specific practices.
All agents must hold a valid license issued by NSW Fair Trading and are bound by legal disclosure requirements. However, as a foreign buyer, you may encounter agents who lack experience with FIRB requirements or international transaction complexities.
Warning signs to watch for include agents who pressure you to sign contracts before FIRB approval, promise properties that aren't available to foreign buyers, downplay additional costs like foreign buyer surcharges, or discourage independent legal advice. Some agents may not fully understand the restrictions on established properties for foreign buyers.
Best practices when dealing with agents include verifying their license status through NSW Fair Trading, asking specifically about their experience with foreign buyer transactions, insisting on written disclosure of all costs and restrictions, and never relying solely on agent advice for legal or tax matters.
Always conduct independent property valuations, building inspections, and legal reviews regardless of agent recommendations. It's something we develop in our Australia property pack.
What legal protections are in place for buyers, and will the legal system back me up if something goes wrong?
Australia's legal system provides robust protections for property buyers, including foreign purchasers, with clear recourse mechanisms when problems arise.
The Australian Consumer Law and state-based property legislation mandate specific disclosure requirements, cooling-off periods for certain purchases, and standardized contract terms that protect buyer interests. Real estate agents and solicitors are required to carry professional indemnity insurance, providing additional financial protection.
Foreign buyers have access to the same legal protections as domestic buyers, including rights to building warranty insurance, property title insurance, and legal remedies for contract breaches or misrepresentation. The court system treats foreign and domestic buyers equally under property law.
If disputes arise, you can access various resolution mechanisms including state-based fair trading tribunals, professional licensing boards for complaints against agents or lawyers, and civil courts for contract disputes or property defects.
However, enforcement from overseas can be challenging, making it crucial to engage qualified Australian legal representation throughout the process. Title insurance is recommended for foreign buyers to protect against title defects or fraud.
What are the classic mistakes and pitfalls foreigners make when buying in Sydney, and what precautions can I take to avoid them?
Foreign buyers commonly make costly errors that can be avoided with proper preparation and professional guidance.
Most Common Mistakes:
- Attempting to buy established properties without realizing they're prohibited
- Failing to obtain FIRB approval before signing contracts
- Underestimating total costs, especially the 8% foreign buyer surcharge
- Relying on currency exchange rates without hedging strategies
- Skipping independent building and pest inspections
- Not understanding ongoing tax obligations like land tax surcharges
- Choosing unsuitable property management for investment properties
- Misunderstanding visa implications of property ownership
Essential Precautions:
- Engage an experienced solicitor specializing in foreign buyer transactions
- Obtain FIRB pre-approval before making any offers
- Budget for all additional costs and taxes upfront
- Use qualified building inspectors and valuers
- Understand your ongoing tax obligations and seek professional tax advice
- Research property management companies if buying for investment
- Maintain detailed records of all transactions for tax purposes
- Consider the impact of Australian property ownership on your home country tax obligations
Many foreign buyers also fail to consider exit strategies, including the potential difficulties of selling as a non-resident and the capital gains tax implications that may apply.
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.
Buying property in Sydney as a foreigner requires careful navigation of complex regulations, substantial additional costs, and lengthy approval processes that don't exist in many other Western countries.
Success depends on thorough preparation, professional guidance, and realistic expectations about timelines, costs, and property limitations in the current regulatory environment.
Sources
- Properstar Singapore - Australia Real Estate Guide
- Properstar Philippines - Australia Property Guide
- Taxes for Expats - Foreign Property Ownership Australia
- Coposit - Foreign Property Buying Guide
- Property Tax Specialists - Non-Resident Guide
- Australian Taxation Office - Foreign Investment Rules
- Australian Taxation Office - Property Types for Foreigners
- Vicki Philipoff - Overseas Buyer Requirements
-Sydney Property Taxes and Fees: Complete Guide for Buyers
-How Much Does Property Cost in Sydney: 2025 Price Analysis
-How to Invest in Sydney Property: Strategy Guide
-Should You Buy Property in Sydney: Investment Analysis
-Average Property Prices in Sydney by Suburb