FIRB approval

What is Foreign Investment Review Board (FIRB) approval?

The FIRB assesses applications from foreigners who would like to invest or buy a home in Australia. If you would like to buy real estate in Australia either to live in or as an investment then you may be required to obtain FIRB approval.

Please see the section which applies to your situation to find out whether you need FIRB approval.

Who does not need approval?

Australian citizen

If you are an Australian citizen, whether living in Australia or overseas:

  • You do not need approval from the FIRB
  • You can buy a new property, existing property or vacant land
  • You can live in the property or it can be an investment

Permanent resident

If you are a foreign national who has a permanent residency visa:

  • You do not need approval from the FIRB
  • You can buy a new property, existing property or vacant land
  • You can live in the property or it can be an investment

New Zealand citizen

If you are a New Zealand citizen:

  • You do not need approval from the FIRB
  • You can buy a new property, existing property or vacant land
  • You can live in the property or it can be an investment

Temporary resident buying with Australian citizen spouse

If you are on a temporary visa such as a spouse visa, 457 work visa or student visa and are buying the property with your Australian citizen spouse*:

  • You do not need FIRB approval if you are buying the property as ‘joint tenants’
  • You will need FIRB approval if you are buying the property together as ‘tenants in common’.
  • You can buy a new property, existing property or vacant land
  • You can live in the property or it can be an investment

*Includes de facto partner (both same sex and different sex).

Who needs approval?

FIRB Checklist

You will need FIRB approval if you fall into the following categories:

Temporary resident

If you are on a temporary visa such as a spouse visa, 457 work visa or student visa:

  • You need approval from the FIRB
  • You can only buy one established dwelling and it must be to live in, however you will be required to sell it once you do not live their anymore.
  • You can buy an investment property, however it must be a new property or vacant land to build a new property
  • You do not need FIRB approval if you are buying the property with an Australian citizen as ‘joint tenants’

Foreign investor

If you are a foreign investor:

  • You need approval from the FIRB
  • The investment property must be a new property or vacant land to build a new property
  • You cannot buy an established dwelling as an investment property
  • They can buy a new property in their name and rent it out to their child that is on a temporary visa

Please refer to the FIRB website for the full details of who is and is not eligible.

Investment or Owner occupied?

Will it make a difference if you live in the property or not? As a general rule investment properties are accepted more readily.

If you are living in Australia under a temporary visa or work visa then you may be able to buy a home to live in while you are in Australia. You can usually buy a new property or an established property. You will usually be required to sell your home when you leave Australia. If you obtain citizenship or permanent residency then you will not have to sell your property.

If you are a foreign citizen living overseas then you are unlikely to be allowed to buy a property to live in in Australia. This is because you do not have a valid visa which allows you to stay in Australia. If you have been granted a temporary residency visa then you may be able to buy a home before you move.

As an Australian living overseas you can buy a property to live in in Australia as long as you can prove to your lender that you will be able to afford the debt. Either you will need to prove that you will continue your job in Australia or that you have another income source.

Types of properties you can buy

  • Investment properties: In most cases the Australian government will approve applications to buy an investment property on the condition that it is a new property. You can often keep an investment property if you leave Australia.
  • Home (owner occupied): If you are buying a home then you may be able to buy an established property (one that wasn’t recently build). You will have to sell your property when your visa expires and you leave Australia.
  • Vacant land (investment): In most cases the Australian government will approve applications to buy vacant land on the condition that you commence construction of a dwelling on the land within 24 months. You can often keep a property that you build as an investment property if you leave Australia.

Applying for permanent residency / citizenship

It is not known by us if owning real estate in Australia in any way affects your application for citizenship. Please refer these questions to your migration agent.

When is FIRB approval required?

You should apply for FIRB “pre-approval” once you have decided to buy a property in Australia. You can then look for a property at your leisure without having to worry about approval. We recommend that you obtain FIRB pre-approval at the same time as you apply with us for your mortgage pre-approval. To find out more refer to our applying for a loan section.

Why does the government monitor foreign investment?

Did you know that the government approves the vast majority of FIRB approval applications? If you meet the guidelines provided on their website, there are very few reasons that could cause your application to be declined.

The government monitors foreign investment to ensure that the investment will benefit Australia. In particular foreign investors are limited to investing in “new” properties so that their investment adds to the existing housing stock in Australia. This is to prevent speculation which has little benefit for the Australian economy and that could result in escalating housing prices.

Do you need help with a mortgage?

We are mortgage brokers that specialise in financing the purchase of Australian real estate by foreigners, Australians living abroad or people temporarily residing in Australia. Please enquire online and we can contact you via email or phone to discuss your finance options.