Guide to buying property in Australia
Buying property in Australia often requires either citizenship or permanent residency, and many home lenders only accept Australian citizens or permanent residents. But don’t worry; non-citizens may still purchase with the right paperwork and a designation as an investment property.
The best way to invest in Australian real estate.
The first step for a foreigner looking to purchase or invest in real estate in Australia is to submit an application to the Foreign Investment view Board (FIRB). If you are fortunate enough to be granted financing for a commercial property:
Either a brand-spanking-new house or a plot of land on which a brand-spanking-new house may be built will do. The property can’t be a preexisting residence.
You must use the home you purchase as your primary residence and put it up for sale when you no longer need it. Costs incurred by non-native purchasers
The FIRB application fee is calculated using the purchase price of the subject property. So, the exact amount might vary, but you should expect to pay about $6,000 if you’re buying a home for less than $1 million and around $38,000 if you’re acquiring a home for more than $3 million. You should verify this with the FIRB before making any purchases.
In addition to the regular expenses associated with purchasing a home, a foreign national must additionally pay a Foreign Citizen Stamp Duty. In New South Wales, for instance, this stamp duty is an additional 8% on top of the standard stamp duty (also called transfer duty). It’s important to verify the state’s stamp duty rate since they all differ.
Aside from these nuances, the steps involved in purchasing a property and securing a mortgage loan are the same as they would be for a local. Those staying in a country temporarily often want to know whether they may purchase real estate.
You still require FIRB clearance if you are in Australia on a temporary visa, such as a partner visa, a 457 work visa, a visa for temporary skills shortages, or a student visa. This is due to the fact that, when it comes to purchasing real estate, you are still considered a foreigner and must adhere to the aforementioned requirements.
You will only be exempt from FIRB clearance requirements to purchase a home if you are married to an Australian citizen or permanent resident.
As a New Zealander, you may relax knowing that you won’t be subject to the same stringent regulations that other visitors must follow. New Zealand citizens have the same rights as Australians when purchasing a house, however, if they do so from outside of Australia, they may be required to pay the foreign citizen stamp duty.
Can I qualify for mortgages in Australia?
Yes, but it’s not quite as simple as that. As a general rule, you need to be an Australian citizen or permanent resident to qualify for a house loan in Australia. Those who do provide credit to international borrowers often do so with stricter terms, such as:
Trying to negotiate a higher interest rate
requiring a bigger first payment (between 30 and 40 percent)
Putting limits on the amount of money that may be brought in from outside to repay the loan
The need to get FIRB permission.
But don’t let it stop you! A wide variety of alternatives are available, including house loans from well-known foreign banks with Australian branches, such as HSBC and Citibank.
Visit our home loan guidelines if you’re planning to purchase a new property in Australia. Our low-interest mortgage loan comparison chart is below if you want to look further.
