Home-Buying Tips For Overseas Residents

Property in Australia is a sound investment for many overseas buyers - but there are strict rules on what types of property foreign nationals can buy, and important factors for Australian citizens who live overseas to consider. Check our Top 5 home-buying tips for overseas residents, and make sure you stay on the right side of the law!

1. If possible... wait

If you're on a temporary visa and you plan to stay, it may be worth waiting until you have permanent residency. Permanent residents do not have to get government approval to buy their home in Australia, and they are also eligible for the First Home Owners Grant. This also gives you more time to 'try before you buy' - see which areas suit your needs - and check out local home auctions.

2. I'm a temporary resident in Australia, can I buy a house?

Yes. But you need to get approval from the Foreign Investment Review Board (FIRB) first. And you can only buy an established house (one that has already been occupied or sold) if you are planning on living there. If you are looking for a home you can rent out - whether now or later - you are limited to buying off-plan or brand new developments, or vacant land that will be developed.

Make sure you get approval before bidding at auction, or you will be breaking the law. It can be done in as little as five working days.

3. Aussies abroad

Many Australians working overseas use their ex-pat salary to fund a home of their own to return to. If you're an Australian citizen, you don't need any government approval to do so. You may want to use a buyers agent to help you find your property if you can't be there in person. They can also bid on your behalf at auction, and organise the building and pest inspections. And you should also get advice from a non-resident mortgage broker, to ensure you make the most of any tax concessions. If you live overseas, you can only borrow up to 80% of the property value.

4. Other exemptions

If your spouse is foreign but you are an Australian citizen or resident, you can still buy property jointly without FIRB approval. But this only applies to de-facto or married spouses - not other family members. New Zealanders are considered permanent residents of Australia, so they are also exempt.

5. Change of plans? Let the FIRB know...

If you want to move house or return home, you need to let the FIRB know. You will have to sell your house if you bought it as a 'second-hand' (established) residential property - you won't be able to keep it and rent it out. But you'll usually get a good capital gain on property in Australia - it's not one of the most affordable places in the world to buy, but it's a valuable asset to have, even temporarily.

No matter where you're from, or where you live, make sure you're fully covered by homeowners insurance as soon as you exchange contracts. Then you can relax, and enjoy the great Australian way of life!