Australian Investment Properties 
FOR FOREIGN INVESTORS

The Foreign Investment Review Board (FIRB) plays a crucial role in regulating foreign investment in Australian real estate. If you’re a foreign investor looking to purchase property in Australia, understanding FIRB approval is essential.

What is FIRB Approval?

FIRB approval is a mandatory process for foreign investors who wish to buy residential property in Australia. The aim is to ensure that foreign investment benefits the Australian economy, particularly by increasing the housing stock and supporting the construction industry¹².

Types of Properties Eligible for FIRB Approval

1. New Dwellings: Foreign investors are generally encouraged to purchase new or near-new dwellings. This helps boost the housing supply and supports economic growth².

2. Vacant Land: Investors can buy vacant land, provided they commit to constructing a dwelling within a specified period, usually four years².

3. Established Dwellings: Generally, non-resident foreign investors cannot purchase established dwellings. However, temporary residents can buy one established dwelling to live in while they are in Australia, with the condition that they sell it when they leave²³.

Application Process

1. Before You Apply: Determine whether you need a specific approval or an exemption certificate. An exemption certificate allows you to bid on multiple properties within a state or territory, but you can only purchase one¹.

2. Submitting Your Application: Applications are submitted online, and a fee is required. Ensure you have all necessary documentation and seek legal advice if needed¹.

3. Approval Conditions: Be aware of the conditions attached to your approval. For example, if you purchase vacant land, you must complete construction within the stipulated time².

Compliance and Penalties

Foreign investors must comply with FIRB regulations. Non-compliance can result in severe penalties, including fines and forced sale of the property². Additionally, properties must be rented out or occupied for at least six months per year to avoid an annual vacancy charge².

Benefits of FIRB Approved Properties

• Economic Growth: By channeling investment into new constructions, FIRB approvals help create jobs and stimulate economic activity².

• Increased Housing Stock: Encouraging the development of new dwellings helps address housing shortages and supports urban development².

Understanding FIRB regulations and ensuring compliance is crucial for a smooth investment process in Australian real estate. Always consult with legal and financial advisors to navigate the complexities of foreign investment in Australia.

If you have any specific questions or need further details, feel free to ask!

Download Your FREE FIRB eBook

Red & Grey Realty is pleased to offer you this informative ebook for free that can assist you in understanding about Foreign Investing in Australia.

Our ebook includes:

• Foreign Purchasers: FIRB Approval
• Buying a property via our developers
• Purchasing within a resort
• Commercial real estate