Getting Started Warm Atmospheric Imagery

01. Framework

Can you buy?
FIRB in Plain English.

The Foreign Investment Review Board governs what non-residents and foreign nationals can purchase in Australia. It sounds complicated. It isn't, once you understand the basic rule.
The short version:

Non-residents and foreign nationals can generally buy new dwellings and vacant land for construction.
Purchasing established (existing) residential property generally requires specific FIRB approval and is subject to additional conditions and in most cases, it's not available to foreign buyers at all.
Temporary residents living in Australia can buy one established property to live in, but must sell when they leave.
Australian citizens living overseas are not subject to FIRB restrictions but may face other non-resident rules depending on their tax residency status.

This is why we focus exclusively on new builds. For the vast majority of our clients, new build developments are the clean, straightforward route that sidesteps FIRB complexity entirely.

FIRB fees for foreign buyers:‍Foreign buyers are required to notify FIRB and pay an application fee. The fee is based on the purchase price of the property for a $750,000 property it is currently $14,100. We guide clients through this as part of our process.

Educational context only. Not legal advice. For official rules, visit firb.gov.au.

The LVR threshold

For non-residents, Australian lenders typically cap the loan-to-value ratio (LVR) at 70% to 80%.
This ensures a robust equity buffer against market volatility.

70–80%

Currency haircuts

Lenders apply a "haircut" to foreign income (typically 20% to 30%) to account for exchange rate fluctuations.
We facilitate introductions to specialist brokers who understand expat complex income structures.

20–30%

What to expect:

Loan-to-value ratio: most non-resident lenders will go to 70-80% LVR. Australian residents can access up to 90% or higher. This means a larger deposit is typically required.
Lender selection: not all Australian lenders accept non-resident applications. The lenders who do often have different income assessment methods, particularly for foreign currency income.
Currency income: most lenders apply a haircut to foreign currency income when assessing serviceability typically 20-30% depending on the currency and lender. Your broker needs to know how to structure the application to minimise this.
Existing offshore debt: overseas mortgages and liabilities are factored into Australian serviceability calculations. This is navigable, but the broker needs to know about it upfront.
Company or trust structures: some clients purchase through structures rather than personally. This affects which lenders are available and how the application is assessed.

Property NXT introduces every client to specialist mortgage brokers with proven experience in non-resident and expat lending. This happens early before you've committed to anything so your real borrowing capacity is clear before strategy begins. No point identifying the perfect property if the finance doesn't work.

03. Mathematics

What will it cost?
Budget Guide.

Beyond the purchase price, there are several costs overseas buyers need to factor in. None of them are surprising if you know about them in advance.

Purchase costs:

Stamp duty surchargeVaries by state and whether you're a foreign buyer. Australian residents pay 3–6% typically. Foreign buyers pay an additional surcharge on top in most states, ranging from 7–8% extra. Total stamp duty for a foreign buyer can reach 12–14% of purchase price in some states.

FIRB feesApplies to foreign buyers on new dwellings (see above).

Legal & Ongoing costsTypically $1,500–$3,000 for a standard new build purchase.

Loan establishment feesVary by lender and loan structure.

Ongoing costs:

Mortgage repayments	Based on your loan amount, LVR, and interest rate.
Body corporate / strata fees	For apartments and townhouses. Varies significantly by development and amenity level.
Property management	Typically 7–10% of weekly rent for a managed investment property.
Land tax	Annual tax on investment properties in most states. Rates and thresholds vary. Foreign buyer surcharges apply in some states.
Insurance	Building insurance (often included in strata for apartments), landlord insurance.

Directional entry points:

Perth	From AUD $750,000
Adelaide	From AUD $650,000
Brisbane / Gold & Sunshine Coast	From AUD $850,000
Melbourne	From AUD $650,000
Sydney	From AUD $900,000

04. Structure

Tax: What Overseas Buyers Need to Know.

Tax is the area most overseas buyers feel least confident about. The good news is the key concepts are straightforward once you understand them. The important caveat is that everyone's situation is different the below is educational context, not tax advice.

*Note that Property NXT are not tax accountants, this advice is for general purposes only and we strongly advise tha you seek independent, professional and personalised analysis before acting. (See SPARK on how we can help you access this)

The 50% CGT discount

Australian residents who hold an asset for more than 12 months receive a 50% discount on capital gains when they sell. Non-residents do not. If you leave Australia and become a tax non-resident, your entitlement to this discount changes. This is one of the most important things to get clear on early, because it affects how you think about hold periods and exit strategy.

The main residence exemption

If you lived in your Australian property as your main residence before moving overseas, you can treat it as your main residence for up to six years while renting it out subject to conditions. This is known as the absence rule. It means some expats can sell a former home after years of renting it out and pay no CGT, while others can't. Your accountant will know which applies to you.

Negative gearing

If your investment property costs more to hold than it earns in rent which is common in the early years the loss can be offset against your other Australian taxable income. This is negative gearing. For non-residents, it applies to Australian-sourced income only, which limits its value compared to what an Australian resident might experience. Your accountant will model this properly for your situation.

Foreign resident capital gains withholding

On the sale of Australian property above AUD $750,000, buyers are required to withhold 12.5% of the purchase price from foreign resident vendors and remit it to the ATO. This isn't a separate tax it's a prepayment mechanism that's credited against your final tax liability when you lodge your Australian tax return. If you're selling, you need to be aware of this in your cash flow planning for settlement.

Depreciation

New build properties attract full depreciation benefits both on the building structure and its fixtures and fittings. This is one of the significant advantages of new builds over established property for investors. A depreciation schedule prepared by a quantity surveyor can meaningfully reduce your taxable income from the property each year. We factor this into the financial modelling we do as part of the Strategy stage.

Property NXT provides educational context only not tax or legal advice. Every client's situation is different, and tax rules change. We connect you with vetted Australian tax accountants who specialise in non-resident and expat structures as part of our process.

Before strategy, before selection, before anything else: you need to know whether you can actually do this.

Can you buy?
FIRB in Plain English.