Australia (AU)

If you are not an Australian citizen or permanent resident, you must apply to the Foreign Investment Review Board (FIRB) for approval before entering into any contract to purchase residential property. CRITICAL UPDATE — Established Dwelling Ban (1 April 2025 to 30 June 2029): Foreign persons (including temporary residents) are BANNED from purchasing established (existing) dwellings during this period — with limited exceptions. Only new dwellings, off-the-plan, and vacant land purchases are permitted for most foreign buyers. Temporary residents who previously could buy one established dwelling as a principal place of residence no longer have this option. Application fees for new dwellings/vacant land: $14,100 for properties under $1M; $28,200 for $1M–$2M (as of 1 July 2025, indexed annually). Fees for established dwellings (where a limited exception applies) are approximately triple those amounts. Approval takes 30 days (standard) or can be fast-tracked. Purchasing without FIRB approval is a criminal offence carrying divestiture orders and fines up to $1.575 million for individuals.

Calculate your maximum borrowing capacity. Australian lenders typically require a 20% deposit to avoid Lenders Mortgage Insurance (LMI). LMI protects the lender (not you) and costs 1–3% of the loan amount if you borrow above 80% LVR. Get a formal pre-approval (also called conditional approval or approval in principle) from an Australian lender or mortgage broker before making any offer. Pre-approval is typically valid for 90 days. Factor in transaction costs of 5–7% above the purchase price (stamp duty + conveyancer + building inspection + moving costs) in your budget calculations.

Australia has significant price variation between suburbs — the same budget can buy vastly different properties in different areas. Use realestate.com.au and domain.com.au to research median prices, recent sales, and suburb profiles. Attend open inspections (typically Saturday mornings). Check school catchment zones for state schools (critical for families). Research flood and bushfire overlays on council and state government mapping tools. Review strata (apartment) records if buying in a strata complex (owners corporation — check for special levies, building defects, and financial health of the strata fund).

A pre-purchase building and pest inspection is strongly recommended before making an offer on any house or townhouse (less critical for apartments). A licensed inspector checks the structural integrity, roof, drainage, moisture, and timber pest (termite) activity. Cost: $400–$700. In Victoria and ACT, a Vendor Statement (Section 32 in VIC) or a Buyer's Guide Statement must be provided by the seller before contracts exchange. In other states, similar disclosure documents are provided. Review these documents with your conveyancer.

Australia uses two primary sale methods: (1) Private Treaty — you negotiate directly with the agent and make a written offer, which can be subject to conditions (finance, building inspection). You have a cooling-off period (see below). (2) Auction — a public bidding process where the highest bid above the reserve wins. There is NO cooling-off period after a successful auction bid — you must have your finance unconditionally approved and building/pest inspection completed BEFORE auction day. Bidding at auction is a legally binding commitment to complete the purchase.

Once an offer is accepted in a private treaty sale, contracts are exchanged (signed by both parties and a 10% deposit paid — though 5% is often negotiated). In NSW and ACT, exchange and cooling-off happen in two steps. In VIC, contracts are signed and a 3-business-day cooling-off period begins. In QLD, a 5-business-day cooling-off period applies. In WA and SA, there are no mandatory cooling-off periods for residential property — due diligence must be completed before signing. Your conveyancer handles exchange and ensures the contract terms are favourable.

NSW: 5 business days cooling-off period; VIC: 3 business days; QLD: 5 business days; SA: 2 business days; TAS: 3 business days; NT: 4 business days; ACT: 5 business days. WA has no statutory cooling-off period. If you withdraw during cooling-off, you forfeit a penalty (usually 0.25% of the purchase price in NSW). You must exercise cooling-off in writing before the period expires.

Your lender completes their valuation and formally approves the loan (unconditional approval). Your conveyancer checks the title, orders searches (council, land tax, heritage, strata), and prepares transfer documents. Organise your building/contents insurance from the date of exchange (you are the insured party at risk from exchange in most states). The settlement period (from exchange to completion) is typically 30–60 days but can be negotiated.

Stamp duty (called Transfer Duty or Land Transfer Duty) is the largest transaction cost. It is payable to the state government at the time of settlement. Rates vary by state: NSW: ~$40,700 + 1.75% for properties around $1M (approximately $40,000–$50,000 for a $1M purchase). VIC: ~$55,000 for a $1M property (standard rate). QLD: $38,025 for $1M. WA: $42,540 for $1M. SA: $48,830 for $1M. Foreign purchaser surcharges apply in most states on top of standard duty: NSW/VIC: 8%; QLD: 7%; SA: 7%; WA: 7%. Use your state revenue office's online stamp duty calculator for your specific purchase price.

On settlement day, your conveyancer electronically transfers funds to the seller via the PEXA (Property Exchange Australia) platform (now standard in all states). The property title is transferred to your name on the land title register. Keys are handed over. The entire settlement process is now digital in all states — you do not need to physically attend. You will receive a settlement statement from your conveyancer showing all funds disbursed.

Your conveyancer lodges the title transfer with the state land titles office (now automatic via PEXA). Update your address for Medicare, Centrelink, the ATO, your bank, electoral roll, and car registration. Set up utility accounts in your name (electricity, gas, water). Arrange strata levy direct debit if buying in an apartment. Council rates will be adjusted and your name added to the rate roll.