Renting or Buying Property in Australia as a Foreigner

Australia is a highly desirable destination for expatriates, investors, and international students due to its stable economy, high quality of life, and strong property market. Foreigners can legally buy property in Australia, but they must comply with government regulations. This guide covers the rental and purchase process, legal requirements, costs, and key considerations for foreigners interested in real estate in Australia.

Renting Property in Australia

Finding a Rental Property

Foreigners looking to rent in Australia can find properties through:

• Online Listings – Websites like realestate.com.au, Domain, Rent.com.au, and Flatmates.com.au offer rental listings.
• Real Estate Agents – Licensed property managers assist with the rental process and lease agreements.
• Expat & Student Housing Websites – Short-term rental platforms like Airbnb, Gumtree, and Facebook Marketplace.

Rental Agreements & Requirements

Most leases in Australia follow these standard terms:

• Lease Duration – Typically 6 to 12 months, with options for renewal.
• Security Deposit (Bond) – Equal to 4 to 6 weeks’ rent, lodged with a state-based tenancy authority.
• Rent Payment – Usually paid monthly or fortnightly in advance.
• Tenant Responsibilities – Utilities (electricity, gas, water, internet) are usually paid separately by the tenant.
• Condition Report – Tenants must sign a property inspection report before moving in.

Average Rental Prices (2024 Estimates)

Buying Property in Australia as a Foreigner

Can Foreigners Buy Property in Australia?

Yes, but foreign buyers must follow strict government regulations:

• Foreign Investment Review Board (FIRB) Approval – Required for all foreign property purchases (except for certain visa holders).
• Foreigners can only buy new properties, off-plan apartments, or vacant land for development.
• Foreigners cannot buy established (resale) homes, except in certain circumstances (e.g., temporary residents using it as their primary residence).

Who Needs FIRB Approval?

Foreign investors must apply for FIRB approval before purchasing property.

Exemptions:

• Australian citizens, Permanent Residents (PRs), and New Zealand citizens do not need FIRB approval.
• Temporary residents can buy one established home for personal use but must sell it when leaving Australia.

Steps to Buying Property in Australia

1. Get FIRB Approval

• Apply online via the Australian Taxation Office (ATO).
• Processing time: 2-4 weeks.
• Cost: $5,600 – $1 million+, depending on property value.

2. Secure Financing (If Needed)

• Foreigners can apply for home loans with Australian banks, but they often require a 20-30% down payment.
• Some banks only lend to Australian citizens and PRs.

3. Find a Property & Make an Offer

• Work with a licensed real estate agent.
• Choose a new home, off-plan apartment, or development land.

4. Conduct Due Diligence & Sign the Contract

• Hire a solicitor or conveyancer to review legal documents.
• Pay the deposit (usually 10% of the purchase price).

5. Settlement & Ownership Transfer

• The settlement period typically lasts 30-90 days.
• Pay stamp duty, legal fees, and FIRB application fees.
• The property title is transferred to the buyer’s name.

Costs of Buying Property in Australia

Foreign buyers must budget for extra costs beyond the property price, including:

• Stamp Duty: 4% – 8% of the property value (varies by state).
• FIRB Application Fee: Starts at $5,600 for properties under $1M.
• Legal Fees: $2,000 – $5,000 USD.
• Real Estate Agent Fees: Typically paid by the seller.
• Property Tax: Annual council rates and land tax (varies by state).

Mortgage Availability for Foreigners

• Foreigners can apply for home loans, but most banks require a 20-30% down payment.
• Some lenders only offer mortgages to PRs and citizens.

Best Cities for Real Estate Investment in Australia

• Sydney – Strong capital appreciation, high rental demand.
• Melbourne – Growing economy, international student hub.
• Brisbane – Affordable housing with strong investment potential.
• Perth – Mining and business hub with steady growth.
• Adelaide – Emerging real estate market with lower property costs.

Key Considerations for Foreign Buyers

Legal Restrictions

• Foreigners cannot buy resale (established) homes unless they are temporary residents.
• All foreign purchases require FIRB approval.

Investment Potential

• Rental yields in Australia range from 2% – 5% per year.
• Capital gains tax (CGT) applies to non-residents selling property.

Frequently Asked Questions (FAQ) Real Estate Australia

Can foreigners buy land in Australia?
Yes, but only for new developments or construction projects, not for resale.

Can foreigners rent out property in Australia?
Yes, foreign buyers can rent out newly purchased properties but must comply with state landlord laws.

What is the minimum investment required for property in Australia?
Property prices start at $300,000 – $500,000 USD in smaller cities but $700,000 – $1,500,000+ in major cities.

Do I need to be in Australia to buy property?
No, foreign buyers can purchase property remotely through a lawyer or agent.

Does buying Real Estate in Australia grant residency?
No, property ownership does not provide a visa or permanent residency.

Are there risks in buying property in Australia?
Yes, including high costs, foreign ownership restrictions, and capital gains tax on resale. Always consult a legal professional before buying.

Conclusion

Australia offers strong real estate investment opportunities for foreigners, expatriates, and investors. However, strict foreign ownership laws, FIRB approval, and financing restrictions make it essential to work with a lawyer and real estate agent to ensure compliance. Proper due diligence will ensure a secure and profitable property transaction.

Use our database to find visa facilitators, real estate agents, and recommended professionals. You will also have the ability to book a time to meet with our expats on the ground. These are individuals just like you who have gone through the immigration process and have been living in your desired country or city.

During these sessions, you can discuss every small detail related to the moving process. It’s like having a trusted friend everywhere you go. Whether you want to plan a short trip, need help finding an apartment, or you want some advice on moving to a particular city, they can help. This is a great way to meet someone with a similar background to help you achieve any of your goals.