Australia is often seen as the ultimate move. It offers a lifestyle that feels reassuringly familiar—same language, similar legal system—but with the weather, space and optimism dialed up. From the harbourside suburbs of Sydney and the laneways of Melbourne to the sun-drenched coast of Queensland, the appeal is obvious.
However, buying a home here is not as simple as hopping on a plane. The Australian property market is one of the most strictly regulated in the world for foreign buyers. You generally cannot just buy any house you like; you are steered towards new builds to support the housing supply.
Whether you are moving for work, seeking a holiday base or investing from afar, understanding the rules of the Foreign Investment Review Board (FIRB) is the first hurdle.
This guide walks you through the buying process in Australia in 2026, from the strict “new dwelling” rules to the specific state taxes you must budget for. We also cover a critical financial factor: your currency exchange. You will be buying in Australian dollars, meaning your budget is constantly moving against the pound, US dollar or euro. We explain how to manage that risk.
Can foreigners buy property in Australia?
Yes, but with significant restrictions. Unlike in Europe or the US, foreign non-residents are generally prohibited from buying “established dwellings” (resale homes).
- New Dwellings Only: Non-residents can typically only purchase new properties (off-plan apartments or house-and-land packages) or vacant land to build on. The government’s logic is that foreign investment must add to the housing stock, not just compete for existing homes.
- FIRB Approval: Before you buy, you must apply for approval from the Foreign Investment Review Board (FIRB). You cannot complete a purchase without this.
- Exceptions: Temporary residents (e.g. on a skilled work visa) may be allowed to buy one established dwelling to live in, but they must usually sell it when they leave the country.
Visas and residency in Australia
Owning property in Australia gives you zero visa rights. You cannot retire there just because you bought a house.
- eVisitor (Subclass 651): For UK and European citizens, this allows stays of up to 3 months at a time within a 12-month period. It is free and strictly for tourism or business visits.
- Visitor Visa (Subclass 600): Allows for longer stays (up to 12 months) for retirees or parents of Australians, but is discretionary.
- Skilled Migration: The primary route for permanent moves. This is a points-based system based on age, occupation and English skills.
- Parent Visas: If your children are settled in Australia, you may qualify for a Contributory Parent Visa, though the wait times and costs are significant.
Why buy property in Australia?
Despite the hurdles, Australia remains a prime destination for lifestyle and investment:
- Lifestyle: The outdoor culture, beaches and sports scene are world-class.
- Economic Stability: Australia has held a record for decades of recession-free growth (until the pandemic) and remains a safe, transparent market.
- Rental Yields: Vacancy rates in major cities like Sydney, Perth and Brisbane are historically low, driving strong rental demand for investors.
The property-buying process in Australia
The system is fast and often revolves around auctions, which can be daunting for the uninitiated.
- Get Pre-Approved: Sellers and agents will expect you to have your finances ready before you view.
- Apply to FIRB: You must get approval before buying. If buying at auction, you can get prior approval.
- Make an Offer or Bid:
- Private Treaty: You negotiate a price with the agent.
- Auction: Common in Sydney and Melbourne. Bidding is public and binding. If the hammer falls, you own it—there is no cooling-off period.
- Exchange Contracts: You sign the contract and pay a deposit (usually 10%).
- Settlement: This is the equivalent of “completion”. It typically happens 30 to 90 days after exchange. Your solicitor hands over the balance and you get the keys.
Costs of buying a property in Australia
Budgeting is critical because foreign buyers face “surcharge” taxes that locals do not pay.
- FIRB Application Fee: You must pay a fee to apply for permission to buy. This is tiered based on property value. For a home worth $1 million, the fee is roughly AUD 14,700 (fees are indexed annually, so check the latest rates).
- Transfer Duty (Stamp Duty): A state-based tax. Rates vary, but budget approx 3-5%.
- Foreign Citizen Surcharge: Most states charge extra stamp duty for foreign buyers.
- New South Wales (Sydney): +8% surcharge.
- Victoria (Melbourne): +8% surcharge.
- Queensland (Brisbane): +7% surcharge.
- Legal Fees: Conveyancing typically costs AUD 1,500 to AUD 3,000.
Why currency exchange is critical
You will need to send money at several stages:
- FIRB application fee (non-refundable)
- 10% Deposit (at auction or exchange)
- Final Balance (Settlement)
Australia uses the Australian dollar (AUD). If your funds are in pounds, US dollars, euros or yen, you are exposed to significant volatility. The “Aussie” is a commodity currency, meaning it often swings based on global mining prices and Chinese economic data.
For illustration, an AUD 1,000,000 property could cost:
- £512,000 at a GBP/AUD rate of 1.95
- £540,000 at a GBP/AUD rate of 1.85
That is a difference of roughly £28,000. Because settlement periods can be long (up to 90 days), the rate can move against you significantly while you wait.
How to manage currency risk
You can reduce this uncertainty with a plan.
- Forward contract: Fix today’s exchange rate for your settlement date. This ensures you know exactly how much the property costs in your home currency, protecting you from a strengthening Australian dollar.
- Market order: If you are waiting for the right property, set a target rate. We will automatically buy Australian dollars for you if the market hits that level.
Why use a specialist currency provider?
Time zones are a major factor. Australia is 9-11 hours ahead of the UK and Europe. When your solicitor needs funds for settlement at 11am in Sydney, it is the middle of the night in London.
Smart Currency Exchange ensures your funds are positioned correctly to meet these deadlines. We handle the timing and the compliance to ensure your money clears in Australia before the settlement meeting begins.
Making transfers on time
“Settlement” in Australia is a precise electronic process (often using a system called PEXA). If your funds are not cleared in the trust account on time, the settlement fails and you can be charged penalty interest.
- Send funds at least 48 hours before settlement.
- Account for the time difference and Australian bank cut-off times.
- Ensure your “Source of Funds” is clear for Australian anti-money laundering checks.
In summary: buying property in Australia
To make your purchase smooth and secure, follow these rules:
- Check FIRB eligibility first – remember, “new dwellings” only.
- Budget for the Foreign Buyer Surcharge (often an extra 7-8%).
- Protect your budget from AUD volatility using a Forward Contract.
Frequently Asked Questions about buying property in Australia
Can I buy an existing house to live in?
Generally no, unless you hold a temporary residence visa (like a work visa). Even then, you must usually sell the property when your visa expires or you leave the country.
Do I need a lawyer?
Yes. You need a solicitor or conveyancer licensed in the specific state (e.g. NSW or Victoria) where you are buying. State laws vary significantly.
Can I get a mortgage in Australia?
Yes, but it is difficult for non-residents. Major banks have tightened lending to foreign incomes. You may need a deposit of 30-40% and interest rates for foreign borrowers are often higher.
