FAQ on buying a house in Australia

If you are not an Australian citizen or permanent resident of Australia, and want to buy real estate in Australia, you must obtain prior approval from the Australian government.

You should not sign a contract before you receive foreign investment approval, unless the contract is conditional on such approval. You must apply in writing for approval to buy real estate.

Below are frequently asked questions on buying a house in Australia. For more information or an application form visit the Foreign Investment Review Board (FIRB) website: www.firb.gov.au.

I am a foreign person. Can I invest in Australia?

It depends on what you wish to invest in. Except in rare circumstances, the acquisition of residential real estate requires prior foreign investment approval before the purchase can proceed. Certain acquisitions of commercial real estate also require prior foreign investment approval.

I am a university student and want to buy a house to live in while at university. Is that allowed?

Yes, but you need to apply for approval. There is a A$300,000 (about US$210,000) limit for the acquisition of residential real estate by students. Students need to be over 18 years of age, be attending a recognized tertiary institution and hold a student visa valid for at least the next 12 months. Students need to provide a letter from their tertiary institution confirming the course they are attending and the duration of that course. The property also needs to be close to the tertiary institution. The property would be subject to the normal conditions that are placed on secondhand properties, namely that the purchaser must live in the house, they cannot rent or lease the property and that they must sell the property if they return home to live or cease to live in the house.

I am an Australian citizen living overseas, do I require permission to purchase a house?

No. Australian citizens are exempt from notification unless they are purchasing through a foreign incorporated company.

What about Australian permanent residents, do they require approval to purchase a house?

No. Australian permanent residents are exempt from notification, unless they are purchasing through a foreign incorporated company or foreign registered trust.

I am an Australian citizen, but my spouse/de facto partner is a foreigner, do we require permission to purchase a house?

Australian citizens and their foreign spouses (which includes de facto partners) are exempt from notification as long as the property is zoned residential and you are buying the property as joint tenants.

I'm a foreign person living in Australia. My sister is an Australian citizen/permanent resident. If we're buying a house together, do I require approval?

Yes. Even though your sister (or any other Australian citizen/permanent resident who may be on the contract) doesn't require approval, you are still required to make the contract conditional on foreign investment approval and submit an application for a decision.

If I buy my property through an Australian company or trust arrangement, does that need approval?

Yes. If you are a foreign person you require approval regardless of the way you buy the property.

I am a student and have approval to own and live in a house for as long as I remain a temporary resident. Can I rent out a room to another student?

No. Approval to purchase the property was granted explicitly on the condition that it was your principal place of residence and that no rental/lease income is to be derived from it.

The property I wish to buy is coming up for auction next Saturday. Do I need prior approval to bid at the auction?

The nature of auction sales is that bids are made without conditions. If you make a bid and have not previously obtained FIRB approval, then you will already have broken the law.

Moreover, the vendor may enforce the contract and depending on whether the purchase accords with government policy, you may be subject to legal action. It is in your own best interests to get prior approval from the government. Whilst no guarantees can be given, every effort is made to process your request in time for the auction date. Obviously, the more notice the better. -- The Jakarta Post