Property Investment for Overseas Buyers

Australia welcomes foreigner property investors. 
Reap the rewards of Low AUD$ and Rising Property Prices.

Discover the unparalleled growth potential of Australian properties between 2019 and 2022, with prices soaring by an astonishing 50% to 80%!  This unprecedented growth has created a surge of interest among foreign investors seeking to capitalize on this lucrative market. 
At Concierge Buyers Advocates, we specialize in helping investors navigate the complexities of Australian real estate, ensuring they find and acquire the right properties for optimal returns.

Investing in Australian properties offers a unique opportunity, especially with the Australian Dollar currently showing signs of recovery and property prices continuing their upward trajectory.  However, it's crucial to understand that not all investment properties are created equal.  To maximize your returns and benefit from both capital growth and Australian Dollar appreciation, strategic decision-making is essential.

Good Australian properties are not marketed overseas, as there is no need to.
You can only buy them from Independent Buyers Agents in Australia.

Here is what you need to know about investing in Australian Properties.

Who can Buy Properties in Australia?

Anyone can buy properties in Australia.  

Property invest rules in Australia are categorised according to the buyer's Australian residency status:  

​

1. Citizens and Permanent Residents - Residents who have the right and privilege to remain in Australia for an unlimited length of time.

2. Temporary Residents - Residents on short term temporary visas, such as student visa, temporary skilled migrant visas, temporary business visa, etc.  When you are granted an Australian visa for entry into Australia, your visa will have a visa class number.  This class number helps to determine if you are considered a temporary or a permanent resident.

3. Non-Residents - Foreigners who do not have any permanent or temporary residency visa.

​

The types of property which you can buy, depends on the type of visa you hold.

Residency status and the types of Australian properties they can buy

Citizens and Permanent Residents

There are no restrictions to purchasing any properties for Citizens and Permanent Residents.  Citizens and permanent residents can purchase any number of properties anywhere in Australia.

​

Temporary Residents

Temporary residents is usually allowed to purchase only one residential property to live in as their residence (home) in Australia, on the conditions that they:

• Use the property as their principal place of residence in Australia;

• Do not rent any part of the property, and must ensure that the property is vacant at settlement; and

• Sell the property within three months from when it ceases to be their principal place of residence.

​

Temporary residents can purchase new and established property from the resale market as their residence, but they are not permitted to purchase established dwellings as investment properties, or rent out, or as holiday homes.

​​

Non-Resident Foreigner

Non-resident foreign investors can buy new or off the plan properties, houses, townhouses, apartments and vacant land.  A non-resident foreigner buying any residential property in Australia, will first need to obtain approval from Foreign Investment Review Board (FIRB) for each property prior to purchase, and generally they will be prohibited to purchase established dwellings in Australia.

What Types of Properties can non-Australian Residents Buy?

Non Australian residents are generally restricted to buying new properties, which can be a good thing. They tend to need less regular maintenance, and allows for tax depreciation.  They can also buy properties such as: 

​

New Dwelling

A new dwelling is a dwelling that will be, is being, or has been built on residential land.

​​

Vacant Land

Foreign persons will normally be allowed to purchase vacant land for residential dwelling development, subject to conditions that:

• The development is completed within four years from the date of approval; and

• Evidence of completion of the dwelling/s is submitted within 30 days of being received.  This could include a final occupancy or builder’s completion certificate.

Vacant land that previously has an established dwelling on the land would generally not be considered as vacant land for the purposes of Australia’s foreign investment framework.

​

Redevelopments

Foreign persons will normally be allowed to purchase an established dwelling for redevelopment in Australia, provided the redevelopment genuinely increases the housing stock.

Foreign persons will generally not be given approval to purchase an established dwelling to redevelop into a single new dwelling.

FIRB and Stamp Duties

Property purchased by foreigners are subject to approval by the Foreign Investment Review Board (FIRB).  Provided all restrictions are satisfied, there are generally no reasons why an application will be rejected.

​

Applications for review and approval is made with payment of the following application fees:

From now till 30th June 2024:

Less than $75,000 :- $4,000
$1 million or less :- $13,200
$2 million or less :- $26,400
$3 million or less :- $52,800
$4 million or less :- $79,200
$5 million or less :- $105,600
More than $5 million :- refer to FIRB

From 1st July 2024:

Less than $75,000 :- $4,200
$1 million or less :- $14,100
$2 million or less :- $28,200
$3 million or less :- $56,400
$4 million or less :- $84,600
$5 million or less :- $112,800
More than $5 million :- refer to FIRB
 

Foreigners buying an Australian property may also be subjected to additional stamp duties.  The amount of stamp duty due varies by state.  In Victoria, a foreign buyer stamp duty of between 3% to 8% of the property price applies.  It may sound a lot, but with good price growth averaging 7% or more annually in some areas, many buyers are not letting this hold them back from a good investment.  Here is why.

​

Property prices, in fact, grew between 50%-80% from 2020 to 2022.  You will recover the additional stamp duties in no time.

​

*Note: the FIRB fees are reviewed annually.  Refer to FIRB for the latest fees.

Taxation and Deductions

Just like any forms of investments anywhere in the world, there are tax considerations for investing in Australian property as well. 

​

Rental income received from the investment property will need to be declared on an Australian tax return.  You may also need to pay Capital Gains Tax on any profit made when selling the property.  

​

However, there are generous allowable deductions, which can offset the cost of holding the investment.  Expenses such as cost of buying, cost of maintaining the property, cost for owner-inspections, cost of repairs, cost of leasing, etc.  What you can claim, is dependant on your tax structure.  Have a chat with us.  We can refer you to good accountants to help you understand your tax obligations and get your investment structure setup optimally.

​

* This information is provided for general guidance only.  You should get independent financial and taxation advice from an accountant.