If you're planning a long-term or permanent听move to Australia, purchasing property may be something you consider for yourself and your family. If you're not a听permanent resident in Australia, you may still buy property, but restrictions apply. Read on for key considerations if you are an expat entering the Australian housing market.
It is essential to note that although Australia was once an affordable place to live with a high quality of life compared to other parts of the world, the land Down Under now comes with a significant price tag. The recently named Melbourne, Sydney, and Adelaide as 'impossibly unaffordable' for buying a house.
Can expats buy property in Australia?
The Australian Government announced a for at least two years, from April 1, 2025, to March 31, 2027. If you are a foreign resident, you cannot buy an established residential dwelling in Australia, either directly in your name or through a trust relationship or business.听Severe penalties can apply for breaking this law.
贬辞飞别惫别谤,听foreign residents can purchase other types of Australian residential property, including new dwellings, vacant land, and property that is to be redeveloped听upon approval from . You will need to to have your situation reviewed before a purchase can be made.
Buying property as a temporary resident in Australia
In the past, temporary residents could purchase an established dwelling to live in as their primary residence in Australia after obtaining government approval. The property could not be rented out as an investment property, and they may have been required to sell the property once they permanently left the country. A temporary resident was considered to be an individual who held a temporary visa that allowed them to stay in Australia for a continuous period of more than 12 months, or someone in Australia on a bridging visa who had applied for permanent residency.
Finding property in Australia
Property websites
The best way to find and view properties that interest you in Australia is online. Popular property websites such as听,听, or听 cover all states in Australia, and you can filter your search by type of accommodation (apartment, house, townhouse, studio), price, number of bedrooms, and location, as well as things like garages, gardens, and pools.
Before you start your听house hunting in Australia, it's essential to have a clear idea of your requirements as well as your budget. Research the areas you wish to live in and try to get a good sense of the types of properties that are available. Collate a list of must-haves, and have an idea of what you are willing to compromise on. Anyone who has bought or sold a house will tell you that the process invariably ends up being longer and more complex than anticipated, so be prepared to take your time.
Auction and private property sale
Homeowners in Australia have the option to sell their property either via an auction or by private sale.听The method of purchase depends on the seller's preference, the property type, and, of course, the current state of the housing market.
Auctions are a popular method of selling properties in Australia, particularly in major cities such as Sydney and Melbourne. Auctions can create a sense of urgency and competition amongst buyers, potentially leading to a higher sale price. In contrast, private sales involve negotiations between the seller and interested buyers, rather than a public auction. Private sales can offer more control over the selling process, and there is no risk of the sale falling through, unlike at an auction. However, a private sale can take longer, and the final sale price may be lower than the price achieved through an auction.
Real estate agents
Most people in Australia use real estate agents when buying or selling property.听Real estate agents are familiar with the market and can be extremely helpful, especially if you are new to the country and its property scene. A good real estate agent will assist you in both house hunting and negotiations. They can help you find suitable properties that meet your criteria and budget, arrange inspections, and provide advice on the local property market.
Real estate agents typically charge a commission based on the sale price of the property, which is usually negotiated between the seller of the property and the agent. While it is possible to buy or sell a property without using a real estate agent, many people choose to engage an agent to help them navigate the complex process of buying or selling property in Australia.
Property prices in Australia
According to the , Australian capital cities are among the least affordable in the English-speaking world for middle-income earners to buy a house. In the 94 major markets that were assessed, Hong Kong topped the list for the most unaffordable, followed by Sydney in second place. Melbourne was seventh and Adelaide was ninth. Australia also had two cities that were ranked 'severely unaffordable,' with Brisbane in 15th spot and Perth coming in at number 20.
A combination of factors has driven the price surge in most parts of Australia. These include rapid population growth since the borders reopened after the COVID-19 pandemic, insufficient housing to meet demand, tax incentives for investors, and low interest rates. , with Australia's median house price reaching AUD 805,000 (USD 524,997). The most expensive median house prices are in Sydney, at AUD 1,118,000 (USD 729,126), followed by Brisbane at AUD 882,000 (USD 575,214), and Canberra at AUD 852,000 (USD 555,649). Other cities with high median house prices include Adelaide, Perth, and Melbourne. Meanwhile, the most affordable cities for housing are Hobart and Darwin, with the Northern Territory capital being the most affordable at AUD 531,000 (USD 346,302).
Unfortunately, many Australians are now resigned to the fact that they will never be able to afford to own a home, or they are moving far away from the city center to areas where prices are more affordable. The general rule of thumb when looking to buy is that the further out you go from the city center, the cheaper and bigger the property will be. Up-and-coming areas are always good to keep an eye on, and a Google search can always provide you with recommendations of suburbs to monitor.
Mortgages in Australia
If you are new to Australia and you are looking to buy a property, you should know that听expats are typically viewed as high-risk borrowers by听Australian banks, which means that you may face more stringent lending criteria than a permanent resident. This can include requirements for a higher deposit or proof of stable employment and income. It's also essential to understand the different types of mortgages available, such as variable-rate and fixed-rate mortgages, and the associated fees. Expats should be aware of the potential tax implications of taking out a mortgage, particularly if they plan to rent out the property. It's always a good idea to seek professional advice from a mortgage broker or financial advisor before making any significant financial decisions.
The process of buying a property in Australia
Once you've found a property you are interested in, you'll need to do your due diligence.听Most real estate transactions in Australia require a lawyer or conveyancer听to ensure that the formalities are followed, and it's a good idea to secure one early in the process. You will also need a mortgage broker and will have to apply for mortgage approval.
While this is all falling into place, ensure that you have thoroughly inspected the property to confirm it meets your requirements and that there are no significant structural issues. This may involve hiring a building inspector or an engineer to obtain a comprehensive report on the property's history.
If the inspections have been conducted, you've acquired the data on the property, and you still wish to proceed, the next step is to听make an offer to the seller听(or, if an auction, put in a bid). If the seller accepts, you will need to sign a contract of sale and pay a deposit. After signing the contract of sale, your conveyancer or solicitor will help with the legal aspects of the purchase. The conveyancer will help to ensure that the property title is clear and that all legal requirements are met before the final settlement. Then, on settlement day, the remaining purchase price is paid, and ownership of the property is transferred to you. You will receive the keys to the property, and the buying process is complete.
First-time home buyer grants in Australia
Some states offer first-time homebuyer incentives or grants; however, temporary residents do not qualify for these promotions. Some states also charge a higher rate of stamp duty, or purchase tax, to non-resident homebuyers to discourage non-residents from buying property. Therefore, if you are eligible to qualify for permanent residency soon, or if your spouse or partner will be, it is sometimes worth waiting before making a purchase.
To be eligible for a first-time home buyers' grant, you must be purchasing a property in Australia for the first time.听Additionally, you must be purchasing the property to live in, not as an investment. You must be a permanent resident or citizen, and the property value may be subject to a specific dollar amount. for a new home valued at AUD 750,000 (USD 489,128) or less.
Permanent residency in Australia
Once you obtain听permanent residency in Australia, you have the full rights to purchase property.听You can buy property for your sole use or as an investment. Permanent residents are also eligible to qualify for first-time home buyers' grants if they are available in their state of residence. Government approval is not required for these purchases, and permanent residents may have more opportunities to obtain homeowner loans than non-residents.
Important:
If you intend to buy a property in Australia, know that听many taxes apply听(insurance, stamp duty, local taxes, etc.).
We do our best to provide accurate and up to date information. However, if you have noticed any inaccuracies in this article, please let us know in the comments section below.
