If you’re not an Australian citizen or resident you are still able to buy property within Australia however only within certain foreign investor guidelines.
New dwellings
New dwellings acquired ‘off the plan’ (before construction commences or during the construction phase) or after construction is complete are normally approved where the dwellings: have not previously been sold (that is, they are purchased from the developer); and have not been occupied for more than 12 months.
There are no restrictions on the number of such dwellings in a new development which may be sold to foreign persons, provided that the developer markets the dwellings locally as well as overseas (that is, the dwellings cannot be marketed exclusively overseas).
This category includes dwellings that are part of extensively refurbished buildings where the building's use has undergone a change from non-residential (for example, office or warehouse) to residential. It does not include established residential real estate that has been refurbished or renovated.
A property purchased under this category may be rented out, sold to Australian interests or other eligible purchasers, or retained for the foreign investor's own use. Once the property has been purchased, it is second-hand real estate and is subject to the restrictions applying to that category.
Established dwellings
Acquisitions by individual(s)
Foreign persons are prohibited from acquiring established dwellings for investment purposes (that is, they cannot be purchased to be used as a rental or holiday property), irrespective of whether they are temporary residents in Australia or not.
Foreign persons who are temporary residents in Australia do not require approval to acquire a second-hand dwelling as their principal place of residence.
Acquisitions by companies
Proposals by foreign-owned companies to acquire second-hand dwellings for the purpose of providing housing for their Australian-based staff are normally approved subject to the following condition:
- the company undertakes to sell or rent the property if it is expected to remain vacant for six months or more
Vacant land
Proposed acquisitions of vacant land for residential development are normally approved subject to development condition(s) imposed under the FATA.
Acquisitions of single blocks of vacant land (that is, land which is zoned to permit the construction of no more than one residential dwelling per block of land) for the purpose of building a single residential dwelling on each block are normally approved subject to the following condition:
- continuous substantial construction must commence within 24 months.
Acquisitions of other vacant land (not single blocks) for the purpose of building multiple residential dwellings are normally approved subject to the following conditions:
- continuous substantial construction must commence within 24 months; and
- at least 50 per cent of the acquisition cost or the current market value of the land (whichever is higher) must be spent on development.
Once these conditions have been fulfilled, properties acquired under this category may be rented out, sold to Australian interests or other eligible purchasers, or retained for the foreign investor's own use.
See www.firb.gov.au/content/real_estate/real_estate.asp for more details.
Source: Foreign Investment Review Board