A Brief Guide to Buying an Apartment in Australia as a Foreign Buyer

Can foreign buyers purchase an apartment for investment purposes, children’s use, or for a  holiday home?

The simple answer is YES, foreign buyers are welcome to can buy an apartment in Australia, but like most countries, some restrictions on what they can buy apply.

Australia is known for its vibrant cities, stable property market, and high-quality lifestyle, making it an attractive destination for foreign investors. Whether you’re looking for an investment property, a home for your children while they study, or a holiday retreat, foreign buyers are welcome to purchase apartments in Australia — with a few conditions.

What Types of Properties Can Foreigners Buy in Australia?

Foreign buyers can generally purchase brand-new or off-plan properties, often referred to as “new dwellings.” These include apartments or homes that have never been occupied.

What Types of Properties Can Foreigners NOT Buy in Australia?

Foreigners are typically restricted from purchasing established residential properties unless they meet specific criteria, such as being temporary residents using the property as their primary residence, or for children’s education.

Approval from the Foreign Investment Review Board (FIRB) is required for most property purchases.

The FIRB Approval Process

Foreign investors typically require approval from Australia’s Foreign Investment Review Board (FIRB) to buy property in Australia. The FIRB is responsible for reviewing and approving foreign investment proposals.

The approval process varies depending on the type of property you wish to purchase.

Temporary residents and certain visa holders may be eligible to buy established dwellings, but they still need to seek FIRB approval.

How Can Foreigners Apply for Property Purchase Approval?

To apply for property purchase approval, foreign investors should follow these steps:

Visit the FIRB Website: Begin by visiting the FIRB’s official website to access the necessary forms and guidelines.

Determine Your Eligibility: Ensure you meet the eligibility criteria for the type of property you wish to purchase.

Complete the Application: Fill out the online application form, providing all required details and documentation. This may include your visa status, financial capability, and investment intentions.

Pay the Application Fee: Submit the required fee specified on the FIRB website.

Await Approval: The FIRB will review your application, and once approved, you will receive a notification of your approval and any conditions attached to it.

Proceed with the Purchase: Once you have received approval, you can proceed with your property purchase in accordance with the conditions outlined in your approval.

Key Requirements for Foreign Buyers

Foreign buyers need to meet several conditions to complete a property purchase:

• FIRB Approval: Mandatory for most purchases.
• Identification Documents: Passport and proof of address.
• Additional Duties: Most states impose extra stamp duties for foreign buyers.
• Proof of Funds: Proof of financial capability to complete the transaction.

Should I Use an Apartment Buyers Agent or Deal Direct With The Developer?

Navigating the Australian property market is complex, especially for overseas buyers unfamiliar with local regulations, taxes, and approval processes. Working with an experienced apartment Buyer’s Agent ensures you:

• Understand what you can legally purchase.
• Receive tailored property recommendations that meet your needs and budget.

• Get access to ALL the best developer and projects on the market, not just those a marketing agent may have.

• Obtain truly independent advice.

• Get professional guidance through the FIRB application and approval process.
• Have expert negotiation support to secure the best price and terms. Remember, the selling agent or developer aim to ghet the highest price for themselves.

Can Foreigners Buy Established Dwellings in Australia?

Generally, NO. While foreign buyers are generally restricted from buying established residential properties, some exceptions exist. Temporary residents and specific visa holders may be eligible to purchase existing dwellings if they meet certain conditions. These conditions include using the property as their primary residence and selling it when they are no longer eligible for this exemption.

Can Foreigners Rent Out Their Properties in Australia?

Yes, foreign property owners can rent out their properties in Australia and are encouraged to do so due to the Australia’s shortage of rental accommodation.

In fact, foreigners have to pay extra taxes if they do NOT rent it out, called a “Vacancy Tax”

Renting out your property can be an excellent way to generate rental income, especially if you have purchased a new dwelling which are very popular.

Real Success: A Case Study

  Overseas Owner uses Mike Bentley's White Glove Apartment Buying Service to purchase an Investment apartment for their children's use while studying in        Melbourne

  Mr. and Mrs Chow live in Asia, and engaged Mike Bentley to obtain assistance in navigating the complexities of buying a property off-the-plan in Melbourne.

Mike provided comprehensive support, including clarifying eligibility criteria and the clients budget, and recommended mortgage brokers to help assist with financing, and lawyers familiar with overseas based buyers.

He then helped to guide them through the FIRB website, assisting with the application process, advising on application fees, monitoring the approval process, explaining approval conditions, and provided  a selection of high quality apartments that met the required criteria.

A shortlist of suitable properties were prepared, and Mike inspected each one personally and spoke to the developer.

Mike prepared a  full analysis of the costs required to make the purchase. He negotiated a discount direct with the developer, ensuring the price paid was below the listed price. He helped to review the sales contract, and ensured all relevant inclusions were provided.

Prior to completion Mike organised a building and defects inspection, and arranged for the sellers to make some minor repairs.

Within 60 days, the family’s children moved into their new apartment, ready for the academic year, with peace of mind that every detail was expertly handled.

Considering an Australian Apartment? Let’s Talk!

Buying property in Australia as a foreigner can be rewarding but requires expert guidance. With my specialised Buyer’s Agent service, I simplify the process, ensuring compliance, value for money, and a stress-free experience.