Buying Property in Australia (2025 Edition)
Thinking about buying property in Australia?
Whether you’re a local or a foreign investor, 2025 brings new rules, rising prices, and fresh challenges.
This step-by-step guide breaks down exactly what you need to know, from market trends to legal approvals, so you can buy with confidence and avoid costly mistakes.
1. Understanding the 2025 Market before buying property in Australia
Before you buy, know where the market stands.
In 2025, buying property in Australia means entering a fast-moving and competitive landscape. Property prices are rising in major cities like Sydney, Melbourne, and Brisbane. Even regional areas are becoming hotspots.
Why? There’s a housing shortage. Demand is strong, but supply is still catching up. More people want homes than there are homes available. That pushes prices up and makes finding the right place harder.
To fix the problem, the government launched big reforms. One example is the $1 billion Pre-sale Finance Guarantee. It helps developers build more homes, especially for low- and middle-income buyers. But it’ll take time to see the results.
Meanwhile, interest rates remain steady for now. But economic conditions can shift fast. That’s why many buyers are jumping in now, before rates or prices rise further.
👉 Bottom line: Before buying property in Australia, take the time to understand the market. Watch prices, check local trends, and keep an eye on government policies. It helps you buy smarter and faster.
2. Know what locals can buy (and their benefits)
If you’re a citizen or permanent resident, buying property in Australia is much more flexible. You can buy almost any kind of property in Australia:
Established homes
New apartments or houses
Vacant land to build on
Investment properties or commercial real estate
There are no restrictions on what you can buy. That gives you more flexibility than foreign buyers. But flexibility comes with cost:
Stamp Duty
This is a tax paid when you buy a property. It changes depending on the state and price. Each state has different rules, so check local calculators before you buy.
For example, in NSW, stamp duty on a $1 million property is around $40,000.
First Home Buyer benefits
If you’re buying your first home, you might get help. Many states offer:
-First Home Owner Grants (FHOG) often $10,000–$15,000
-Stamp duty discounts or exemptions
-Shared equity schemes: in VIC and WA, the government co-buys part of your home to lower your costs
But there’s a catch: Most of these benefits apply to new properties, not older homes.
Land Tax
If you’re buying an investment property, you’ll likely pay land tax each year. Your primary home is usually exempt.
Tip: Be Prepared: Buying property in Australia means more than just a deposit. Plan for:
- • Stamp duty
- • Legal fees
- • Inspections
- • Ongoing costs like council rates and insurance
👉 Bottom line: Buying property in Australia as a local gives you more freedom, but it still requires planning. Know the costs, explore the grants, and make every dollar count.
3. Learn the rules for foreign buyers
Buying property in Australia as a foreigner comes with strict rules and in 2025, those rules just got tougher.
🚫 New ban on established homes
As of April 1, 2025, foreign investors cannot buy established (second-hand) homes in Australia.
This temporary rule lasts until March 31, 2027 and is designed to ease pressure on local buyers and renters.
If you’re a non-resident, this rule means:
- • You can’t buy an existing house or apartment
- • You can only buy new or off-the-plan properties
✅ Who can still buy?
There are a few exceptions to the ban. You may still be able to buy property in Australia if you are:
- • A New Zealand citizen living in Australia
- • A permanent resident or married to an Australian citizen
- • A worker under the Pacific Australia Labour Mobility (PALM) scheme
- • An investor buying new properties or land to develop homes
So yes, foreigners can still buy property in Australia, but only under specific conditions.
Apply through the FIRB
Almost all foreign buyers must apply to the Foreign Investment Review Board (FIRB) before buying property in Australia. Failing to follow these rules can result in:
Large fines
Forced sale of the property
Legal action by the Australian Tax Office (ATO)
👉 Bottom line: If you're not a citizen or permanent resident, buying property in Australia comes with limits. You’ll need to stick to new builds and follow all government rules closely.
4. Get FIRB approval
What is FIRB?
Foreign Investment Review Board (FIRB). The FIRB is a government body that reviews foreign investment proposals. Before you sign a contract or make an offer, you must get FIRB approval, especially if you’re not a citizen or permanent resident.
How to apply
Here’s how to apply for FIRB approval when buying property in Australia:
- 1. Visit the ATO’s FIRB portal
- 2. Submit your application – include details of the property and your visa/residency status
- 3. Pay the application fee
- 4. Wait for approval – this usually takes 30 days, but can take longer
Fees
- • Around $14,100 for homes under $1 million
- • Higher fees apply for more expensive properties
- • Non-refundable, even if the deal falls through
👉 Bottom line: FIRB approval is a legal must when buying property in Australia as a foreigner. Apply early and follow the rules to avoid penalties.
6. Know your costs when buying property in Australia
Buying property in Australia isn’t just about the purchase price. There are plenty of hidden and ongoing costs you need to budget for.
Upfront costs
Stamp Duty: This is a state tax, and it can be high. In NSW, buying a $1 million property means paying around $40,000.
FIRB Fees (foreign buyers): Starting at $14,100, based on property value
Legal Fees: Around $1,500–$3,000 for a conveyancer or solicitor
Inspections: Building and pest checks can cost $400–$800
Loan Setup Fees: Banks often charge admin fees when setting up your mortgage
Ongoing costs
Land Tax: Applies to investment properties or land over a certain value
Council Rates & Utilities: Paid quarterly to your local council
Maintenance & Insurance: Essential for protecting your property
Extra for foreign buyers
If you leave your home empty for more than 6 months a year, you may face a vacancy fee.
Also, foreign investors pay Capital Gains Tax (CGT) when selling, even on their main property.
👉 Bottom line: The real cost of buying property in Australia goes beyond the sale price. Always plan for the extras.
7. Secure financing or Pre-approval
Before you go house hunting, get your finances in order. This is a must for anyone buying property in Australia.
What is Pre-approval?
Pre-approval means a lender has reviewed your finances and is willing to offer you a loan—up to a set amount. It’s not a final loan, but it shows sellers you’re serious.
How much can you borrow?
Most banks require a 10%–20% deposit. The more you put down, the better your chances and the lower your monthly repayments.
If your deposit is under 20%, you may have to pay Lender’s Mortgage Insurance (LMI). This protects the bank, not you.
For foreign buyers
Loans are harder to get. Many banks have stricter rules or won’t lend at all to non-residents.
You may need to:
Provide more documents
Use a specialist broker
Pay higher interest rates
Tip: Know your Budget
Factor in all your costs: stamp duty, legal fees, and ongoing expenses, before deciding how much you can afford.
👉 Bottom line: Whether you're a local or a foreign buyer, buying property in Australia starts with knowing what you can actually afford. Get pre-approved and be ready to move fast.
8. Make your offer and follow the rules
Once your finances are sorted, it’s time to act.
Making an Offer
Found the right place? Make an offer through the agent, or Bid at auction if required. If accepted, you’ll sign a contract and pay a deposit (usually 10%).
Settlement
The final step in buying property in Australia is settlement. This usually takes 30–90 days. Your solicitor and lender handle the legal work and payment.
After you buy
Register your title
Pay any remaining stamp duty
Make sure you’re meeting tax rules, especially if you’re a foreign buyer
Occupy or rent out the property (foreign owners must not leave it vacant for over 6 months)
👉 Bottom line: Buying property in Australia doesn’t end at signing. Follow through, meet your legal obligations, and secure your investment.
Stay updated
Laws around buying property in Australia can change—fast.
In 2025 alone, we’ve seen major rule shifts, especially for foreign buyers. More reforms could follow as the government tackles housing supply and affordability.
Stay Informed
1. Follow updates from the ATO and FIRB
2. Check your state’s property websites
3. Talk to a licensed conveyancer or legal expert before buying
Whether you’re a local or an overseas investor, keeping up with the latest rules helps you avoid surprises and costly mistakes.
Buying property in Australia is never a one-and-done process. Stay alert, stay informed, and protect your investment.
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