Buying Residential Property on a Temporary Visa in Australia
- Liem Ngo
- Dec 9, 2024
- 6 min read
Updated: Sep 27
Purchasing residential property in Australia while on a temporary visa involves specific requirements set by the Foreign Investment Review Board (FIRB). Understanding these rules can help you navigate the process and avoid unexpected costs.
1. What Are Temporary Visas? Who Is a Temporary Resident?
A temporary visa allows individuals to stay in Australia for a specific period for work, study, tourism, or business.
Who Is a Temporary Resident (for FIRB Purposes)?
According to FIRB guidelines, a temporary resident is an individual who:
Holds a temporary visa that permits them to stay in Australia for more than 12 months continuously, regardless of how long remain on the visa; or
Lives in Australia, has applied for a permanent visa and holds a bridging visa that allows them to stay while their application is processed.
Distinguishing Temporary Residents from Foreign Persons
As defined in Section 4 of the Foreign Acquisitions and Takeovers Act 1975, a foreign person is an individual not ordinarily residing in Australia. While the term covers various legal entities, this article focuses solely on individuals.
Key Types of Temporary Visas
There are various types of temporary visas in Australia that may allow holders to purchase residential property. For more detailed information regarding specific visa categories and requirements, it is advisable to consult with an experienced advisor or mortgage broker. They can provide tailored guidance based on the visa type and individual circumstances to ensure compliance with relevant foreign investment regulations.
Work Visas:
o Temporary Skill Shortage (TSS) visa (subclass 482)
o Skilled Regional (Provisional) visa (subclass 491)
o Skilled Employer Sponsored Regional visa (subclass 494)
Study Visa: Student visa (subclass 500)
Business and Investment Visas: Business Innovation and Investment (Provisional) visa (subclass 188)
Other Visas:
Temporary Graduate visa (subclass 485)
Working Holiday visa (subclass 417)
Special Category visa (subclass 444)
2. FIRB Approval for Temporary Visa Holders
Most temporary visa holders must apply for FIRB approval before purchasing residential property in Australia such as established properties, new developments, or vacant land.
Exemption Certificate
FIRB Exemption Certificate can simplify the property acquisition process for temporary visa holders in Australia. It reduces the need for separate FIRB approvals when searching for the right residential property.
What Is an Exemption Certificate?
An Exemption Certificate allows temporary visa holders to:
Make multiple attempts to purchase one residential property.
Search within a specific state or territory in Australia.
Avoid individual FIRB applications for every property, saving time and administrative effort.
How It Works
Application: Apply for an Exemption Certificate before starting the property search.
Property Search: Search for residential properties within the nominated state or territory.
Purchase Attempt: Make multiple purchase attempts under the same certificate without requiring new FIRB approval for each offer.
Final Acquisition: Once a property is purchased, notify FIRB as required.
Why Consider an FIRB Exemption Certificate?
Efficiency: No need to apply for FIRB approval repeatedly.
Flexibility: Allows you to make competitive offers without waiting for approval.
Reduced Costs: Save on multiple application fees.
Important Considerations
Property Type: The certificate applies only to one residential property.
Time Limit: The certificate is valid for a limited period, specified during approval.
State/Territory Restriction: It applies only within the nominated state or territory.
Compliance Obligation: You must still comply with all FIRB conditions and report the purchase after acquiring the property.
Fees for FIRB application
For the 2025-26 financial year, the fees for acquisitions of residential land are as follows:
Established Dwellings: Fees start at $13,500 for acquisitions less than $75,000 and rise to a maximum of $3,615,600 for acquisitions over $40 million, with fees increasing by $1 million of consideration.
No Established Dwellings: Fees start at $4,500 for acquisitions less than $75,000 and increase to a maximum of $1,205,200 for acquisitions over $40 million, with the fee tiers rising by $1 million of consideration.
A complete schedule of fees can be found on the Foreign Investment website (Table 2 & 3): Schedule of Fees
3. Exemptions for FIRB approval
Acquisitions for diplomatic or consular purposes.
Acquisitions by a New Zealand citizen eligible for a special category visa, or a holder of an Australian permanent resident visa.
Acquisitions by an individual purchasing land as joint tenants with their Australian citizen spouse, Australian permanent resident spouse, or New Zealand citizen spouse (who is eligible for a special category visa) (this exemption does not include purchasing property as tenants in common).
Acquisitions of a time share scheme where the foreign person’s total entitlement (including any entitlements held by their associates) to access the land is no more than four weeks in a year.
acquisitions of land used for premises that provide for residential care, a retirement village, or certain student accommodation, provided the interest is not above the relevant commercial land monetary screening threshold.
Acquisitions of certain interests in designated Integrated Tourism Resorts
4. Loan Eligibility for Temporary Visa Holders
Temporary visa holders can apply for home loans in Australia, but they typically face stricter requirements compared to Australian citizens or permanent residents. Lenders assess factors such as the type and duration of your visa, employment stability, deposit size, and credit history.
Key factors affecting eligibility include:
Visa Type & Duration: Lenders prefer applicants with at least 12 months remaining on their visa, particularly for work visas like the TSS (subclass 482).
Employment Stability: Full-time, stable employment for at least 6 months is often required. Self-employed applicants may need to provide additional documentation.
Deposit Requirements: A larger deposit (typically 20% or more) is usually required, though a co-borrower who is a permanent resident can help reduce this.
Credit History: A solid credit history in Australia is important for loan approval. Lenders may also review your international credit history.
LVR (Loan-to-Value Ratio): Temporary visa holders may face lower LVR limits (usually 70%-80%).
Temporary visa holders can improve their chances of securing a loan by saving for a larger deposit, building a strong credit history, and potentially working with a mortgage broker.
5. Stamp Duty Surcharge
Temporary visa holders and foreign buyers must pay a stamp duty surcharge in addition to the standard stamp duty charged on property purchases in most Australian states and territories.
Examples of Stamp Duty Surcharge Rates
Victoria: 8% (effective from 1 July 2019)
New South Wales (NSW):
8% (from 1 July 2017 to 31 December 2024)
9% (from 1 January 2025)
Stamp duty surcharge exemptions or concessions
In some Australian states, temporary visa holders may be eligible for exemptions or concessions on stamp duty surcharges when purchasing residential property, depending on their circumstances. However, these exemptions vary by state and eligibility criteria. It’s crucial to consult with a legal professional or mortgage broker to understand the specific conditions and available concessions related to stamp duty surcharges for individuals on temporary visas.
6. Steps to Buying Residential Property on a Temporary Visa
Assess Your Eligibility: Check your visa type and determine if FIRB approval is required.
Apply for FIRB Approval (if needed): Submit your FIRB application before making an offer on the property.
Consult a Mortgage Broker: Work with a mortgage broker specializing in lending to temporary visa holders to explore borrowing options.
Search for the Right Property: Focus on new properties, vacant land, or established properties.
Secure Financing: Provide proof of income, employment, and visa status to strengthen your loan application.
Complete the Purchase: Engage a solicitor or conveyancer to handle legal paperwork and ensure compliance with FIRB conditions.
Purchasing residential property in Australia on a temporary visa is achievable with the right planning. Consider FIRB approval, stamp duty surcharges, and loan eligibility criteria to avoid surprises. With expert advice from real estate professionals and mortgage brokers, you can turn your Australian property ownership dream into reality.
For the latest updates, visit the official Foreign Investment in Australia and ATO website for residential property: Residential property application for foreign investors | Australian Taxation Office
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