The answer is yes – but it comes with conditions. Australia’s government welcomes foreign investment in property, but it regulates it carefully. Expats (meaning foreign nationals who aren’t Australian citizens or permanent residents) can purchase Australian property, but they face extra:
- Rules
- Approval steps
- Taxes (like capital gains tax and income tax)
Who Is a Foreign Buyer in Australia?
In Australia, the law uses the term “foreign person” to classify who needs special approval to buy property. If you are an Australian citizen or hold permanent residency, you’re not considered a foreign buyer – even if you’re an Aussie expat living abroad.
As you might expect, citizens and permanent residents (as well as most New Zealand citizens living in Australia) can buy any property without prior government approval. However, anyone else – including temporary residents on visas and overseas investors – is deemed a foreign person so you have to follow the foreign investment rules.
And being labeled a foreign person isn’t a judgment on character; it’s literally just a legal definition. The idea is to ensure that foreigners buying property do so in a way that benefits Australia.
The Role of the Foreign Investment Review Board (FIRB)
Any foreign person purchasing property needs to get approval from the Foreign Investment Review Board (FIRB). FIRB is the government body that reviews foreign purchases to make sure they align with national interests, like we mentioned before.
So before you buy, you apply for FIRB approval and pay an application fee. The fee isn’t trivial; it scales with the property value. For example, buying a house under AUD 1 million incurs a AUD 14,100 FIRB fee, which only gets higher the more expensive your home is.
Luxury real estate deals can see fees well over AUD 100,000. This is, of course, on top of the purchase price of the property itself. And failing to get approval when required can lead to steep fines or even forced sale of the property, so it’s not something you can skip as an expat.
Most applications by expats are approved, especially if you’re buying a new investment property or building on vacant land (more on those options below). The government mainly wants to ensure the investment adds to Australia’s housing stock.
What Can Foreign Investors Buy?
Australia sets clear limits on what types of residential property foreign buyers can purchase. The general rule is that expats should invest in new or additional housing rather than competing with locals for what’s already a limited supply of existing homes.
Established dwellings (i.e. second-hand houses or apartments that have been previously owned or occupied) are heavily restricted for foreign buyers. In fact, from 1 April 2025, the government has temporarily banned foreign persons from buying any established dwelling at all. (This two-year ban, which is in effect until 31 March 2027, was introduced to ease housing affordability pressures.)
So under the current rules, even expats on temporary visas can no longer purchase an existing house as a home.
That said, you can see on that link from the Australian Taxation Office (ATO) website that limited exceptions do still exist – for example, if a foreign investor plans to redevelop an old property into multiple new units, that may be considered, since it adds to the housing supply.
By and large, though, established dwellings are off the table for foreign buyers right now. So, what can you buy?
New Dwellings
New constructions are your main target. New dwellings – like brand-new apartments or houses that have never been occupied – are fair game for expats. Buying off-the-plan from a developer or a newly built home gets easier approval because it’s creating new housing stock.
Vacant Land
Vacant land is another option for foreign buyers, provided you intend to build a residence on the land within a certain timeframe. The government doesn’t want speculators just land-banking, so if you buy vacant land, you’ll be required to start construction (usually within 2-4 years as a rule of thumb).
There’s an emphasis on use: if you buy land or a new property, you’re expected to put it to residential use (living in it or renting it out). In fact, there’s even an annual vacancy fee to discourage foreign owners from leaving properties empty – if your property is unused for over 6 months a year, you may incur a fee equal to your FIRB application fee.
That makes holding a vacant investment quite costly and is a big incentive to either occupy the home or have tenants.
Other Land
Lastly, note that commercial properties (like offices or shops) and agricultural land have their own separate rules and are not as restricted as residential homes. But for most expats, the interest is in home – from investment property that generates rental income for you to places to live while in Australia.
Navigating the Australian Property Market as an Expat
It helps to do your homework on the property market and local buying process. Start by researching areas and prices through online property portals like Domain or Realestate.com.au.
These websites list most properties for sale and can give you a feel for what’s available within your budget. And consider how the location of a property might affect its long-term value and rental appeal. Are you looking in a capital city like Sydney or Melbourne, where prices are higher but rental demand is strong?
Or perhaps you’re eyeing Brisbane, Perth, or the Australian Capital Territory (ACT) (home to Canberra) for more affordable options.
Once you have a target property, now’s the time to speak with local professionals. A reputable real estate agent can guide you through making an offer or bidding at auction (auctions are a common way to buy homes in Australia).
Since you’re an expat, you might also consider hiring a buyer’s agent, who are licensed professionals that work on your behalf to find and negotiate a property purchase. They can be especially useful if you’re overseas and can’t attend inspections in person.
Speaking of inspections, when you find a property you like, try to view it yourself or have someone you trust do so. Pictures online can definitely be deceiving. Then if the property checks out, proceed with those building and pest inspections so you know the home is in good shape.
Legal Conveyancing
Your solicitor will:
- Review the contract of sale (which in Australia can be quite detailed)
- Ensure the title is clear of issues
- Coordinate the closing (known as “settlement”)
The process and timeline can vary by state – for example, some states have a cooling-off period after signing a contract, but others (like buying at auction in most states) do not. Your lawyer will guide you on this. They’ll also make sure the Foreign Investment Review Board conditions are met and that your purchase is registered appropriately.
There’s now a requirement for foreign owners to register their property on the national Register of Foreign Ownership, and your conveyancer can help with that too.
How Upscore Can Help
If you’re an expat serious about investing in Australian property, consider getting your finances in order early with Upscore’s Finance Passport! It can help you organize your financial profile and present yourself as a credible buyer to lenders and sellers alike.
