Buying a property in Australia

Buying a property in Australia and obtaining a residence permit

The most critical issue for the applicants to know is that they cannot receive Australian residency only by buying a property in this country. A foreign investor who is planning to buy a property in Australia needs to get approval from the Australian Foreign Investors Board, which is known as FIRB. The FIRB Board of Foreign Investors is a government advisory board that discusses the purchase of residential or commercial property by a non-Australian citizen. This agency reviews foreign investment to make sure that the investment will help the Australian economy and control stocks in the real estate market. Foreign investment is often limited to real estate. You must have temporary or permanent residence in Australia to be able to buy a property. So just buying a property will not make you reside in Australia, but you can find other ways to invest in this country.

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Topics reviewed in this article:

• Buying a property in Australia and people who are qualified to buy a property
• The legal process for buying a property in Australia
• The cost of buying and renting a property in Australia

Buying a property in Australia and people who are qualified to buy a property

To buy a property in Australia, a foreign investor must already have a residence in this country (either temporary or permanent.) One can obtain temporary residency in Australia by a student visa, work visa, and so on. Therefore, buying a property in Australia will not bring you a residence permit, but you must have a kind of residency in Australia to be able to buy a property.

Usually, temporary residents and foreign investors can buy the following properties:

• Investment

You can invest in a property while you are temporarily residing in Australia. You are transferring part of your capital to Australia by buying a property in this country.

• Residential property

You can buy a property for residential purposes. It means that you can only buy one residential property, and you have to choose it as your central place of residence. If you do not intend to live in it, you must sell it.

• Land

As a foreign investor, you will also be able to buy land or new properties.

• People who have temporary residence in Australia can invest in this country by buying a property. But when their residency ends, they must sell the purchased property because one cannot obtain a residence permit by buying a property in Australia.
• People who have permanent residence in Australia can also buy a property in this country and do not have to sell the property after a while. Buying a property in Australia is not limited to residential homes. However, one can also buy commercial property such as offices, factories, and so on, which will also be profitable.

The legal process for buying a property in Australia

Many foreigners desire to buy a property in Australia every year, but it can vary depending on your visa and residence status. Before everything, you need to have complete knowledge about this issue. It is best to consult with legal experts before taking any action. In general, the property market in Australia has a fixed price. This property stability is not limited to homes and residential properties, but it is also the same in most commercial properties such as offices, factories, hotels, and commercial farms.

The process of buying a property in Australia is as follows:

• You may have a specific location in your mind to buy a property in Australia, but you need to compare the local price and your budget beforehand. First of all, check your funds and financial viability and make sure that you can afford that property.
• If you are a foreigner temporarily resident in Australia, you must legally obtain a permit from the Foreign Investment Review Board (FIRB). The main task of this organization is to review foreign investments and foreign business plans. But if you are a permanent resident or a citizen of Australia or New Zealand, you will not need the approval of this organization. It is a simple process, and it usually takes two weeks from the date of application to complete.
• You must submit the application form with contact details, passport, and visa documents to this organization.
• Finding a property is the next step. If you choose a residential home, it should be your central place of residence, which is only for temporary visa holders. You must also specify the property details, including address, street number, street name, and postal code.
• It takes approximately 30 days for the FIRB to issue your confirmation after the legal process is complete. Of course, depending on your circumstances, it may sometimes take longer.

The cost of buying and renting a property in Australia

Buying a property in Australia and the cost of buying and renting a property in Australia has increased in recent years. If you purchase a property in Australia but have not lived in it for at least six months, you must pay its fees. Property prices in Australia vary depending on its area, whether inside or outside the city. The table below shows the local property prices in three major Australian cities:

The average value for a property in Australia is 7,598 dollars in the city center and 5,323 dollars outside the city. As a general rule, you should pay approximately 5% of the property’s price for various property purchase costs such as legal fees, stamp fees, property inspection fees, and other expenses. Property’s rental costs will also vary depending on the property’s location: