Buying property in Australia — the basics

Buying a property is realistic for permanent residents and citizens. For temporary residents, FIRB (Foreign Investment Review Board) rules apply.

FIRB rules for temporary residents (as of May 2026)

• Temporary residents can usually buy ONE established dwelling, only to live in (not to rent out), and must sell when they leave Australia.
• Temporary residents can buy new dwellings or vacant land (with build-within-time conditions) without limits, subject to FIRB approval.
• FIRB application fees are substantial — they tripled in April 2024 for established dwellings. Verify current fees on https://firb.gov.au/
• A federal ban on foreign buyers of established homes was introduced in 2025 (verify scope and exemptions) — temporary residents who fall within exemptions can still buy.

For citizens and permanent residents

• No FIRB approval needed.
• First Home Buyer concessions vary by state — stamp duty discounts, First Home Owner Grant (FHOG), First Home Loan Deposit Scheme (federal). Worth a state-by-state look.

The buying process (broad)

1. Mortgage pre-approval — banks assess your borrowing capacity. You'll need 3–6 months of Australian payslips for most lenders.
2. Find a property — auctions are common in VIC and NSW, private treaty (offer and negotiation) elsewhere.
3. Make an offer or bid at auction.
4. Building and pest inspection — verify a current quote with your inspector; do this before you sign anything you can't withdraw from.
5. Cooling-off period (private treaty only — auctions usually have no cooling off).
6. Conveyancing — a conveyancer or solicitor handles the legal transfer. Verify current fees with your conveyancer.
7. Settlement — usually 30–60 days from contract signing.

Stamp duty

• A state tax on the purchase. Usually 3–5% of the property value, sometimes more.
• First Home Owner concessions can reduce or eliminate it for first homes under a state-specific value cap.
• Foreign buyer surcharges apply in NSW, VIC, QLD and others — an additional 7–8% on top of standard stamp duty for foreign buyers.

Common gotchas

• Auction sales are unconditional — you can't pull out after winning even if your loan falls through. Pre-approval is essential before bidding.
• Strata fees on apartments — body corporate fees on apartments can run several thousand dollars per year. Ask before buying.
• Land tax — separate from stamp duty, paid annually on investment properties. Some states tax foreign owners more heavily.