Your All-In-One Guide to Buying Property in Australia as a Foreigner in 2025

The Australian property market has shown extraordinary progress in recent years by becoming a top choice amongst people who want to buy overseas property. Its strong housing market along with the way of life it provides ensures brimming investors in this location.

Are you looking for a promising property market to invest in? Look no further, learn why and how to buy property in Australia as a foreigner below!

1. Types of properties foreign investors can purchase

In Australia, there are rules and regulations around the type of housing foreigners can purchase. You have to apply for the FIRB (The Foreign Investment Review Board) to get approval before buying your desired property.

Source: firb.gov.au

FIRB works to advise the government (and the treasurer) on the country’s Foreign Investment Policies. They give approval on applications and investments to increase the housing supply of Australia.

Properties Foreigners Can Buy:

• Vacant land: Foreigners can buy land for development, with no existing buildings.
• New, off-plan properties: Foreigners can buy newly built or under-construction properties.
• FIRB-approved properties: Foreigners can buy properties with approval from the Foreign Investment Review Board.

Properties Foreigners Cannot Buy:

• Established or second-hand dwellings: Foreigners generally cannot buy existing residential properties unless they are temporary residents or FIRB-approved investors.
• Existing residential properties: Typically off-limits unless specific criteria are met (temporary residency or FIRB approval).

2. Steps when buying a property in Australia

1. Obtain FIRB Approval

Before purchasing property in Australia, foreign buyers must obtain approval from the Foreign Investment Review Board (FIRB). This ensures compliance with Australian foreign ownership regulations.

How to apply:

• Complete the online application form on the FIRB website.
• Pay the application fee, which ranges from AUD 4,000 to AUD 150,000 depending on the property’s value (2025 rates).
• Approval typically takes 30 days but may take up to 90 days. Ensure you have FIRB approval before signing any contracts to avoid penalties.

2. Open an Australian Bank Account

An Australian bank account is necessary for handling financial transactions related to the property, such as deposits, settlement costs, taxes, and ongoing bills.

Requirements:

• A valid passport.
• Proof of identity (e.g., driver’s license).
• Tax File Number (TFN) or proof of application (recommended for tax purposes).
• Proof of address in your home country or Australia. Many banks allow non-residents to open accounts remotely.

3. Start Searching for Properties

Begin exploring properties that match your preferences using online platforms like Juwai Asia. You can filter by location, type, budget, and more.

4. Choose the Right Real Estate Agent

A good agent will provide expert guidance on the Australian property market, help with negotiations, and ensure compliance with relevant regulations.

Key factors to consider:

• Local knowledge and expertise in the area you're interested in.
• Proper licensing with the relevant state or territory authority.
• Affiliation with the Real Estate Institute of Australia (REIA) or a state-level body.

5. Conduct Property Viewings

Visit properties to assess their condition and suitability. If you're unable to attend in person, many agents offer virtual tours or videos.

6. Legal Checks and Due Diligence

Conduct thorough legal checks to ensure the property is free of legal issues such as liens, unpaid rates, or ownership disputes.

Steps:

• Verify zoning regulations to ensure the property can be used for its intended purpose.
• Engage a conveyancer or property lawyer for a title search and inspection.
• Hire a building and pest inspector to check for structural integrity and pest issues.

7. Make an Offer

Work with your agent to present an offer on the property. Offers often include conditions such as financing approval or satisfactory building inspections.

Once accepted, you’ll typically pay a deposit (around 10%) to secure the deal.

8. Arrange Financing (if necessary)

If you plan to use a mortgage, finalize the terms with a lender. Lenders generally require proof of income, a deposit (usually 20%-30% for foreign buyers), and a property valuation.

9. Finalize the Contract of Sale

Your lawyer or conveyancer will review the contract to ensure that all terms and conditions are clear and legally sound. They may also require FIRB approval documents.

10. Sign the Contract and Make the Payment

Once the contract is agreed upon, you’ll sign it and pay the remaining balance. Your lawyer will ensure all legal and financial obligations, including taxes and fees, are met before the settlement.

11. Register the Property

After settlement, your lawyer or conveyancer will register the property under your name at the relevant Land Titles Office, finalizing your legal ownership.

12. Pay Taxes and Fees

When buying property in Australia, there are various taxes and fees that you need to account for. These costs can vary depending on the state or territory.

General taxes and fees:

• Stamp Duty: Calculated as a percentage of the property value, usually around 4%-6%, depending on the state.
• Property Taxes: Annual taxes imposed by local councils, based on the value of the property.
• Legal Fees: Typically range from AUD $2,000 to AUD $5,000.
• Title Registration Fee: A one-time fee for registering your ownership, with amounts varying by state.

Additional costs for foreign buyers:

• Foreign Ownership Surcharge: Extra stamp duty, typically 7%-8%, in states like NSW and Victoria.
• Vacant Residential Property Tax: In some states, this tax applies to properties left unoccupied.

Consult with your lawyer to fully understand the specific tax obligations for your chosen state or territory.

13. Transfer Utilities

After the property is officially registered in your name, you’ll need to set up or transfer utilities such as electricity, water, gas, and waste management services.

Many utility providers offer online or phone services to help facilitate a smooth transition.

It’s strongly recommended to work with a lawyer or conveyancer familiar with Australian property transactions to ensure compliance with all regulations. For official guidance, refer to:

• Australian Taxation Office (ATO): For tax requirements for foreign property buyers.
• State Land Titles Offices: For title verification and registration.
• Real Estate Institute of Australia (REIA): For helpful resources on buying property in Australia.

3. Can I get a Mortgage in Australia?

Yes, foreigners can obtain a mortgage in Australia. Australian banks and financial institutions, including Commonwealth Bank of Australia (CBA), Westpac, and ANZ, provide home loans to non-residents.

However, the terms for foreign buyers differ from those for Australian residents, often involving higher deposit requirements, stricter documentation, and additional approvals.

Interest Rates

Mortgage interest rates in Australia can vary based on the lender, loan type, and the borrower’s financial situation.

As of 2025, fixed-rate home loan rates generally range from 5.50% to 6.25%, while variable rates may start at around 5.00%, influenced by market conditions and the Reserve Bank of Australia's policies.

5. Frequently Asked Questions

1. Can I get Permanent Resident status if I buy property in Australia?

No, purchasing a house in Australia does not automatically grant you permanent residency. The Australian government evaluates several other factors when considering permanent residency applications, including your skills, qualifications, work experience, and financial assets.

2. What tax do you pay when buying a house in Australia?

When buying property in Australia, there are various taxes and fees that you need to account for, such as Stamp Duty, Property Taxes, Legal Fees and Title Registration Fee. These costs can vary depending on the state or territory.

3. Can a foreigner buy property in Australia?

Yes, foreigners can buy property in Australia, but they must meet specific conditions. The key requirement is that non-resident foreign investors and temporary residents must obtain approval from the Foreign Investment Review Board (FIRB) before purchasing a property.

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