The Complete Guide to Buying Australian Property as a Foreign Investor

danicacarter2023
Dec 10, 2025
4 min read

Updated: Jan 7

Buying property in Australia as an overseas investor is absolutely possible – and when done correctly, it is one of the safest, most transparent, and high-performing markets globally. This guide breaks down exactly how foreign investment works, what you are eligible to purchase, and how to complete the process from overseas with confidence.

Australia welcomes global investors, but the process is regulated. That regulation is what protects capital, maintains build quality, and keeps the market stable. Once you understand the framework, the buying journey becomes straightforward.

1. What Foreign Investors Are Allowed to Buy in Australia

Foreign buyers can legally purchase:

1. Newly built homes (FIRB-approved)

This includes brand-new houses, duplexes, townhouses, and apartments that have never been lived in.This is the most common and most secure pathway for overseas buyers.

2. Off-the-plan properties

Homes still under construction (or yet to start) where the contract will be completed in the future.Developers pre-register these with FIRB, so approval is streamlined.

3. Vacant land for building a new home

As long as construction starts within the required timeframe.

Foreign investors generally cannot buy established (second-hand) homes unless they qualify under specific exemptions.

2. Understanding FIRB Approval

The Foreign Investment Review Board (FIRB) is the government body that approves foreign property purchases.

How FIRB works

Every foreign buyer must apply before exchanging contracts.
Approval is typically fast for new builds because developers pre-clear the site.
Fees vary based on price; for example, a $2–3 million purchase attracts a higher fee than a $1 million purchase.

Why FIRB exists

It ensures foreign investment supports Australia’s housing supply by directing overseas capital into new housing, not draining existing supply.

What this means for you

New builds, off-the-plan homes, and land-backed freehold houses are your main eligible options – which is perfect, because these are the highest-growth, lowest-risk assets anyway.

3. The Step-by-Step Buying Process for Overseas Investors

Step 1: Identify your budget and objectives

Consider:

• Are you focused on capital growth?

• Do you want rental yield?

• Are you planning a future relocation for your family?

• Do you prefer a freehold house or a luxury townhouse or apartment?

Step 2: Work with a buyer’s agent who specialises in foreign investors and new-build homes

You need an advisor who:

• Understands FIRB

• Knows high-calibre developers

• Inspects on your behalf

• Can secure opportunities unavailable online

• Verifies engineering and construction quality

This is essential when buying from overseas.

Step 3: Conduct shortlisting and due diligence

This includes:

• Location analysis

• Price benchmarking

• Build quality assessment

• Engineering and waterproofing checks

• Rental demand review

• Developer reputation

Foreign investors often overlook engineering standards – but this is what protects long-term value.

Step 4: Secure FIRB approval

Your agent or solicitor will lodge the application.For new builds, this step is usually fast and straightforward.

Step 5: Exchange contracts and pay the deposit

Deposits are usually 10 percent, depending on the project.

Step 6: Settlement

Payment of the remaining balance when the home is built (for off-the-plan) or immediately for completed new builds.

Step 7: Property management and ongoing compliance

If you’re leasing the home out, ensure professional management, insurance, and annual compliance obligations are met.

4. What Makes Australian Property So Attractive to Foreign Investors

1. Freehold land ownership

Foreign buyers value this deeply. In Australia, owning a house or duplex means you own the land beneath it – permanently.

2. Strong capital growth

Sydney, in particular, has one of the most consistent long-term growth records of any global city.

3. Transparent legal and financial systems

No hidden taxes, no unexpected confiscations, no unstable regulatory shifts.

4. World-class construction standards (when you choose well)

Boutique developers and premium builders produce homes that hold value for decades.

5. High rental demand

International students, professionals, and local families create strong long-term rental markets.

6. Government protection of property rights

Investors own their assets securely — a major reason Chinese, GCC, Singaporean, and American buyers choose Australia.

5. Common Mistakes Overseas Buyers Make

Buying without checking engineering quality

This is the number one source of regret. Not all new builds are equal.

Relying solely on online listings

The best opportunities never appear publicly.

Misunderstanding FIRB rules

Buying the wrong type of property can result in compulsory resale – avoidable with proper advice.

Choosing the wrong suburb for growth

Not all “luxury suburbs” perform equally. Micro-location matters.

Not using a specialist buyer’s agent

Representation protects you, especially when you’re overseas and cannot inspect.

6. The Best Types of Properties for Foreign Investors

1. Luxury duplexes in premium Sydney suburbs

Freehold, land-backed, high rental demand, exceptional resale appeal.

2. Boutique new builds with strong engineering credentials

Double brick or concrete, high-quality finishes, reputable builders.

3. Off-the-plan homes from top-tier developers

Perfect for investors wanting time to plan finances before settlement.

4. New houses on good parcels of land

Long-term capital growth drivers.

5. Premium townhouses in tightly held areas

Lower maintenance with strong rental returns.

7. How We Help International Buyers

We specialise in sourcing Sydney’s highest-quality freehold, land-backed new luxury homes – all foreign-investor eligible.

Our service includes:

• Full property search and shortlisting

• Engineering and construction quality assessment• On-the-ground inspections

• Video walkthroughs

• Price negotiation

• FIRB support

• Settlement oversight

• Local rental management assistance

Foreign investors deserve transparency and certainty. We ensure every decision is data-driven, compliant, and aligned with your long-term goals.

Request an Information Pack

If you are an overseas investor looking to secure a premium Sydney property, we can provide you with exclusive access to high-quality opportunities and complete support throughout the purchasing process.

Click here to request your complimentary information pack which includes a clear overview of FIRB requirements, our criteria for selecting high-performing properties, our investment strategy, and our end-to-end acquisition process.