Post | Fairlane Partners

Foreigners buying real estate properties in Australia

Fp Editors Posted on 13 Jan 2023

There are many reasons for foreigners to snap up Australian real estate properties. If you are a foreigner, you might do so because of these reasons:

Australian Real Estate has performed well over a long period, whereas other traditionally favourable investments such as US shares and European bonds have been much more volatile.
To diversify your investment portfolios beyond your home shores to hedge against the risks of potential home country political/financial instability.
To seek higher yields on real estate
A hedge against currency fluctuations
Wealth transfer or growth
To obtain a dwelling first in anticipation of a move to Australia further down the road
As a gift to your children or grandchildren
Personal use whilst in Australia

If you want to buy Australian properties as a foreign person, you'd need to follow these steps:

1. Obtain Foreign Investment Review Board (FIRB) approval

To purchase residential real estate in Australia, you must first obtain approval from Foreign Investment Review Board (FIRB). As per FIRB, a foreign person is a foreign non-resident or temporary resident. To apply for approval, visit https://firb.gov.au/apply-now

2. Understand your FIRB approval conditions

You are likely to receive your FIRB approval within 30 days. Take your time to understand the conditions in the approval letter. You must adhere to these conditions when you purchase your property and after settlement. If you do not comply with these conditions, you may be subjected to an infringement notice, civil penalty or criminal prosecution.

3. Record your property on the ATO Land and water

For residential properties, the Australian Tax Office (ATO) keeps details of these purchases of residential properties by foreign nationals on the ATO Land and water register. You are required to enter your purchased residential property on the ATO Land and water register within 30 days of settlement. This is normally a condition of your FIRB approval.

4. Lodge your annual Vacancy fee return

For residential dwellings, you are required to lodge an annual Vacancy fee return within 30 days of the end of every 12 month period you own it. In the Vacancy fee return, you need to tell us how the dwelling was used over the previous 12 months. For more information on the Vacancy fee, see www.ato.gov.au/vacancyfee

What residential real estate properties can foreigners buy?

Under Australia’s foreign investment framework, in most instances, applications to purchase new residential real estate properties are usually....

The information on this website is provided for general information only and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisers. Although every effort has been made to verify the accuracy of the information, we disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information or any loss or damage suffered by any person directly or indirectly through relying on this information.