Overseas Buyer Restrictions in Australia: Can You Buy?

Foreign investment in Australian residential property is heavily restricted. The Foreign Investment Review Board (FIRB) enforces rules that prevent most overseas buyers from purchasing homes in Australia. But “most” isn’t “all”—some pathways exist for non-residents and temporary visa holders.

The headline rule: if you’re not an Australian citizen or permanent resident, you generally cannot buy an existing home. Full stop. FIRB approval is exceptionally rare for residential property purchases by foreigners and typically requires you to prove you’re planning to live in the property long-term.

However, new apartments are often an exception. A foreign buyer can purchase a newly constructed apartment (defined as a property completed fewer than 12 months ago) before you purchase, or during initial off-the-plan sales. Once an apartment has been lived in by the original purchaser and resold, it becomes “existing” and foreigners are locked out. This creates a market segmentation where foreign buyers drive new apartment demand but have no secondary-market access.

Land and vacant premises have different rules. Broadly, foreign buyers cannot buy residential land or vacant residential land intended for building. However, if you’re buying land with an existing house that you’ll occupy, some state circumstances allow it—but you’ll need FIRB approval.

Temporary visa holders (485, 482, 457) are treated as non-residents from an FIRB perspective. However, some state-based exceptions exist. For instance, a 485 visa holder who’s worked in Australia for two years might be eligible to buy with an employer sponsorship letter and evidence of permanent residency intent. These are narrow exceptions; most 485 holders cannot borrow.

A practical scenario: you’re a foreign national on a 482 visa working in Australia. You want to buy a new apartment in Brisbane as an investment. Technically, you can purchase the new apartment under most circumstances, but then you’ll face the lending problem: mortgage lenders won’t lend to 482 visa holders on investment properties because the visa is temporary and tied to a specific employer.

FIRB approvals for existing residential property are slow and uncertain. The application process takes 6–8 weeks minimum. Approval is not guaranteed and often comes with conditions (e.g., “you must live here for two years”). For transactions under $250,000, FIRB approval is rare but not impossible; for higher values, it’s exceptionally unlikely unless you can demonstrate exceptional circumstances.

State-based rules layer on top of federal FIRB rules. Some states charge surcharges on foreign buyer purchases (up to 8% in NSW). Other states mandate that foreign buyers live in the property or have specific visa categories. Victoria and Queensland have slightly more open policies for international investors, but FIRB is still the principal barrier.

Purchase and hold is virtually impossible for foreigners in established suburbs. Your strategy should be: buy new, sell new, or invest in off-the-plan apartments. The moment an apartment changes hands to an owner-occupier, foreign investor liquidity evaporates.

If you’re a temporary resident planning to stay long-term, the smarter path is to convert to permanent residency first, then buy. The mortgage market will open up, FIRB restrictions disappear, and your options expand to include all properties, not just new apartments.

Disclaimer: This article provides general information only and should not be taken as financial or legal advice. FIRB rules, state restrictions, and eligibility criteria vary. Consult an immigration lawyer and mortgage broker before proceeding with any purchase.