Can temporary residents purchase a home in Australia

It is a common misconception that temporary residents can’t buy a home in Australia. In fact they can, however, there are a number of special conditions and some additional costs involved. This newsletter provides an overview of these requirements.

Buying an established residential property as a home

If you are an Australian temporary resident and you wish to buy an Australian residential property you must first meet the following conditions:

• hold a temporary visa that on issue allowed you to remain in Australia for a total period of more than 12 months (even if there is less than 12 months remaining on the visa at the time you purchase the property) or
• Are residing in Australia, have submitted an application for a permanent visa and hold a bridging visa which permits you to stay in Australia until that application has been finalised.

There are some additional conditions including:

• the residential property being purchased must be used as your principal place of residence in Australia,
• you do not rent any part of the property and the property must be vacant at the settlement date,
• you agree that your will sell the property within 3 months from when it ceases to be your principle place of residence,
• you must obtain approval from the Foreign Investment Review Board (FIRB) and pay the relevant fees which start at $5,000.

Buying a new residential property

Temporary residents will normally be allowed to purchase new dwellings in Australia without being subject to any conditions. Temporary residents may purchase new dwellings in addition to one established dwelling. There is no limit on the number of new dwellings a temporary resident may purchase, but approval from FIRB is generally required prior to each acquisition.

A ‘new dwelling’ is a dwelling that will be, is being, or has been built on residential land, has not been previously sold as a dwelling, and has either:

• not been previously occupied; or
• if the dwelling is part of a development and was sold by the developer of that development, has not been previously occupied for more than 12 months in total.

New dwellings do not include established residential real estate that has been refurbished or renovated.

As you will appreciate from this newsletter this is a complex area. It is best to seek legal advice from a legal or conveyancing company that has experience in this field. Please contact us if you require any additional information. Click here for further details.