Australia’s property market is an attractive prospect for many overseas buyers, including those living in the country on a temporary visa. Whether you’re here for work, study, or family reasons, you may be wondering if you’re eligible to buy property in Australia as a temporary resident. The short answer is yes—but there are rules, approvals, and restrictions to be aware of.
Temporary Visa Holders Can Buy Property, But with Conditions
Foreign citizens, including those on temporary visas such as a Temporary Skill Shortage (subclass 482), Student (subclass 500), or Temporary Graduate (subclass 485) visa, can purchase property in Australia. However, any non-resident or temporary resident looking to buy property must first apply for approval from the Foreign Investment Review Board (FIRB).
The FIRB is a government body that regulates foreign investment in Australian real estate. Its primary goal is to ensure that overseas investment benefits the country and supports the housing supply.
What Properties Can Temporary Visa Holders Buy?
Typically, temporary visa holders are allowed to purchase:
- Newly built properties (never been sold or lived in)
- Vacant land (on the condition that you build a home within four years)
- Off-the-plan properties
You are usually not allowed to buy existing dwellings unless you plan to live in the property while holding your visa. In this case, the home must be sold once you leave Australia or your visa expires. The FIRB aims to prevent foreign buyers from reducing the supply of existing homes available to Australian residents.
FIRB Approval: What You Need to Know
FIRB approval must be obtained before purchasing any property, and there is a fee involved. The application fee depends on the value of the property and starts from around AUD $14,100 for properties under $1 million. This fee increases for more expensive properties or if multiple properties are involved.
It’s important to note that failing to obtain FIRB approval before entering into a binding contract can result in significant penalties, including forced sale of the property.
Can You Invest in Property on a Temporary Visa?
Yes, property investment is possible—but again, it must comply with FIRB regulations. You may buy a new dwelling for investment purposes, but you’ll need to rent it out to comply with FIRB rules. Existing homes are generally off-limits for investment unless you redevelop the site to increase housing supply.
For those on a Business Innovation and Investment Visa (subclass 188), property can be part of a broader investment strategy, provided it aligns with your visa conditions.
Seek Legal and Financial Advice
Buying property in Australia while on a temporary visa can be complex. It’s highly recommended to speak with a migration agent, solicitor, and mortgage broker who understand FIRB regulations and the unique challenges facing foreign buyers. Not all lenders will finance temporary visa holders, and some may require a higher deposit.
Final Thoughts
While you can buy property in Australia on a temporary visa, the process involves several important steps and government approvals. Being aware of the FIRB requirements, understanding what types of property you can legally purchase, and seeking professional advice can help ensure your property purchase goes smoothly and lawfully.
