5-MINUTE READ
Share:
Australia’s strong economy has made it one of the most attractive property markets to invest in. Purchasing property in Australia can help qualify foreign nationals for permanent residency, if the right investment visa pathway is followed.
While buying property alone does not lead to permanent residency, some investor visas like the Significant Investor Visa (SIV) do enable permanent residency if you invest over $5 million AUD in complying investments. Other options like the Business Innovation and Investment (Provisional) visa (subclass 188) can also provide a pathway to permanent residency through property purchases under certain conditions.
Read on to learn everything you need to know about using property investments to secure permanent residency in Australia.
Can I Become an Australian Resident if I Buy Property?
Buying property in Australia does not automatically qualify you for permanent residency. However, investing in property can assist with certain visa applications that lead to permanent residency.
For example, if you invest over $5 million AUD in qualifying assets for at least 4 years through the Significant Investor Visa pathway, you can become eligible for a permanent visa. Investing in Australian real estate is one qualifying option.
The Business Innovation and Investment (Provisional) visa (subclass 188) also enables a pathway to permanent residency if you purchase property as part of a $200,000 AUD minimum business or investment activity requirement.
The downside is that foreigners can only purchase certain types of property in Australia—typically, new buildings or vacant land. Plus, they might find it harder to get home loan approval from certain banks. It’s best to speak to a specialist mortgage broker about foreign income mortgage options.
Get a free Australian mortgage assessment today.
Apply online to get a free recommendation with real rates and repayments.
Apply for Purchase
Apply for Refinance
Who Is a Permanent Resident in Australia?
A permanent resident is someone who holds a permanent permit or visa but was not born in Australia and is not a citizen. Permanent residents can live in Australia indefinitely and enjoy the same rights as citizens.
After residing in Australia for four years, with at least 12 months as a permanent resident, foreigners can become Australian citizens.
While buying a property in Australia doesn’t guarantee permanent residency, it can assist applications for investment visas that lead to permanent resident status.
Who Is a Temporary Resident in Australia?
A temporary resident has the right to reside in Australia for a set period of time. For example, someone with a working holiday visa is a temporary resident. Other reasons for temporary residency include studying or business. Typically, temporary residence only lasts up to 18 months.
Temporary residents must pay tax on Australian sourced income and can purchase property in the country. However, as soon as they leave the country, they must sell the property. If they wish to buy an investment property, they must abide by the same rules as foreign non-residents.
How Can I Become a Permanent Resident in Australia?
Firstly, you need to apply for an appropriate investment visa. The Significant Investor Visa and Business Innovation and Investment (Provisional) visa are two options that enable permanent residency through property investments and business activities in Australia.
Once you have submitted your application, the Australian Department of Home Affairs (DHA) may take 12-24 months to approve you. Meeting the visa requirements does not guarantee approval.
If you don’t qualify for one of Australia’s permanent investment visas straightaway, you may be able to work towards eligibility with business experience or temporary visas.
Can I Invest Money in Australia to Get Permanent Residency?
If you want to obtain permanent residency through an investor visa, you must invest a minimum of $5 million AUD through the Significant Investor Visa pathway. Purchasing Australian real estate is one qualifying investment option.
Other visa options like the Business Innovation and Investment (Provisional) visa offer alternative ways to apply for permanent residency that don’t require as much capital. You may qualify by purchasing property as part of meeting the $200,000 AUD minimum business or investment requirement.
Around 5,000-6,000 Significant Investor Visas are granted each year, leading to permanent residency in most cases. The Business Innovation and Investment visa also has around a 70% success rate for leading to permanent residency.
Can I Buy Property in Australia as a Foreigner?
Yes, foreign investors can buy property in Australia. However, you must apply to the Foreign Investment Review Board (FIRB) for approval as a foreigner. Plus, you may face restrictions. Generally speaking, foreigners can only buy new buildings or vacant land in Australia.
Also, you may face certain lending restrictions regarding foreign income. If you speak to a mortgage broker, they can help you find the right non-resident home loan for your situation.
What Is FIRB?
The FIRB is an Australian institution that assesses all foreign purchases of Aussie property and land. Australian permanent residents and citizens, including Aussie expats living outside Australia, don’t need to apply for FIRB approval. However, non-residents and temporary residents will need FIRB approval before purchasing a property or land on Aussie soil.
Foreign purchasers will need to pay an application fee and wait around 30 days to hear back. The more expensive the property is, the higher the application fee.
Can I Get an Australian Home Loan as a Foreigner?
Foreign residents can apply for Australian home loans with lenders willing to consider foreign currency. However, some foreign currencies are viewed less favourably than others.
For example, if you earn SGD, the lender might only look at between 80 – 100% of your income. However, if you earn HKD, the lender might only assess 50 – 80% of your net earnings.
Eligibility Criteria For a Mortgage in Australia For Permanent Residents
The eligibility criteria for mortgages in Australia for permanent residents are similar to those for Australian citizens. However, there are a few key differences.
- Permanent Residency Status: You must have a valid permanent residency visa in Australia.
- Income: You must have a stable income that can support your mortgage repayments.
- Employment: You must be employed full-time or part-time.
- Credit History: You must have a good credit history.
- Deposit: You must have a minimum deposit of 5% of the property value.
- Loan-to-Value Ratio (LVR): The maximum LVR for permanent residents is 95%. This means that you can borrow up to 95% of the property value, and you will need to provide a deposit of 5%.
There are a few lenders that offer mortgages to permanent residents with an LVR of up to 90%. However, these lenders typically have stricter requirements, such as a higher minimum deposit and a more stringent credit check.
What Documents Do Permanent Residents require?
The documents required for permanent residents to qualify for a mortgage in Australia vary depending on the lender. However, some of the most common documents include:
- Proof of Identity: This could be a current passport, driver’s licence, or birth certificate.
- Proof of Permanent Residency: This could be a copy of your permanent residency visa or a letter from the Department of Home Affairs.
- Proof of Income: This could be a copy of your most recent pay stubs, tax returns, or bank statements.
- Proof of Employment: This could be a letter from your employer stating your employment status and salary.
- Proof of Deposit: This could be a bank statement showing that you have the required deposit for the property.
- Credit Report: Your credit report will show your credit history and any outstanding debts.
In addition to these documents, lenders may also request other information, such as your financial goals, your debt-to-income ratio, and your housing affordability.
If you are a permanent resident in Australia and you are interested in getting a mortgage, it is important to speak to a mortgage broker. A mortgage broker can help you compare different lenders and find the best deal for your needs.
Get Help from a Specialist Mortgage Broker
If you’re having trouble applying for a home loan in Australia or are struggling with any other aspect of home buying and ownership, we encourage you to seek help from one of our specialist mortgage brokers who specialise in home loans for Australia expats and foreign investors.
Get in touch with our mortgage brokers today to get started.
Get a free Australian mortgage assessment today.
Apply online to get a free recommendation with real rates and repayments.
Apply for Purchase
Apply for Refinance
Frequently Asked Questions
Can I buy a house in Australia if I am not a permanent resident?
No, you cannot buy a house in Australia if you are not a permanent resident. You will need to obtain permission from the FIRB to buy any property in Australia, including a house.
If I buy a house in Australia, will I be eligible for permanent residency?
No, buying a house in Australia does not automatically qualify you for permanent residency. There are a number of other factors that the Australian government considers when assessing permanent residency applications, such as your skills, qualifications, work experience, and financial assets.
Can I become an Australian citizen by buying property?
Buying property doesn’t automatically guarantee you Australian citizenship or permanent residency. However, some investment visas can help your permanent resident application. Once you have permanent residence and live in Australia for a minimum of four years, you can apply for Australian citizenship.
What property can foreigners buy in Australia?
Foreigners can purchase new buildings and vacant land in Australia with approval from the FIRB. Temporary residents can buy established dwellings but must live in the property the entire time they own it. Once they move out, they must sell the house.
How long does it take to get permanent residency through an investment visa?
The processing time for an investment visa can vary depending on the subclass of visa you apply for. For example, the subclass 188 visa typically takes around 12 months to process, while the subclass 189 visa typically takes around 24 months to process.
Can I buy Australian citizenship?
No, you can’t buy Australian citizenship. However, by investing in Australian real estate and committing to living in the country, you’ll get closer to permanent residency. From there, you can apply to become an Australian citizen.
Can I get permanent residency in Australia if I buy any Australian property while living overseas in Singapore?
No, buying any Australian property while living overseas in Singapore will not automatically qualify you for permanent residency in Australia. There are a number of other factors that the Australian government considers when assessing permanent residency applications, such as your skills, qualifications, work experience, and financial assets.
However, investing in property can assist with certain visa applications that lead to permanent residency. For example, if you invest over AUD 5 million in qualifying assets for at least 4 years through the Significant Investor Visa pathway, you can become eligible for a permanent visa. Investing in Australian real estate is one qualifying option.
Here are some of the other visa options that allow you to get permanent residency in Australia by investing:
- Business Innovation and Investment Visa (subclass 188): This visa allows you to invest AUD 1.5 million in a business in Australia. You must also have a business plan and demonstrate that your investment will create jobs or generate economic activity.
- Regional Sponsored Migration Scheme (subclass 187): This visa allows you to invest AUD 500,000 in a business in a regional area of Australia. You must also have a business plan and demonstrate that your investment will create jobs or generate economic activity.
- Employer-Sponsored Permanent Residency Visa (subclass 186): This visa allows you to be sponsored by an Australian employer for permanent residency. The employer must be able to demonstrate that they are unable to find a suitable Australian worker for the position.
The best way to determine if you are eligible for permanent residency in Australia is to speak to an immigration lawyer or consultant. They will be able to assess your individual circ*mstances and advise you on the best visa option for you.
Can I get Australian PR if I buy any property in Australia while living overseas in Hong Kong?
Acquiring property in Australia while residing abroad in Hong Kong will not automatically grant you permanent residency in Australia. The Australian government evaluates various factors when assessing permanent residency applications, including skills, qualifications, work experience, and financial assets.
However, investing in property can support specific visa applications that can lead to permanent residency. For instance, if you invest a minimum of AUD 5 million in eligible assets for at least four years through the Significant Investor Visa pathway, you may become eligible for a permanent visa. Investing in Australian real estate is one qualifying avenue.
Here are some other visa options that enable you to attain permanent residency in Australia through investment:
- Employer-Sponsored Permanent Residency Visa (subclass 186): This visa enables sponsorship by an Australian employer for permanent residency. The employer must demonstrate their inability to find a suitable Australian worker for the position.
- Regional Sponsored Migration Scheme (subclass 187): This visa permits you to invest AUD 500,000 in a business located in a regional area of Australia. You must also establish a business plan and prove that your investment will generate employment or economic activity.
- Business Innovation and Investment Visa (subclass 188): This visa allows you to invest AUD 1.5 million in an Australian business. You must also develop a business plan and demonstrate that your investment will create jobs or stimulate economic activity.
The most reliable way to determine your eligibility for permanent residency in Australia is to consult with an immigration lawyer or consultant. They can evaluate your unique circ*mstances and recommend the most suitable visa option for you.
Additionally, here are some important considerations if you are contemplating the purchase of Australian property as a non-resident:
You must obtain approval from the Foreign Investment Review Board (FIRB) before acquiring property in Australia.
Foreign buyer taxes may apply, and they can be substantial.
As a non-resident, securing a mortgage may be challenging.
To personally manage your property in Australia, you must possess a valid visa for living in the country.
Can I get PR in Australia if I buy Australian property while living overseas in the UAE?
No, purchasing Australian property while residing abroad in the UAE will not automatically grant you permanent residency in Australia. The Australian government takes into account several other factors when evaluating permanent residency applications, including your skills, qualifications, work experience, and financial assets.
Nevertheless, investing in property can support specific visa applications that can lead to permanent residency. For instance, if you invest more than AUD 5 million in qualifying assets for a minimum of four years through the Significant Investor Visa pathway, you may become eligible for a permanent visa. Investing in Australian real estate is one of the qualifying options.
Here are some other visa alternatives that permit you to achieve permanent residency in Australia through investment:
- Employer-Sponsored Permanent Residency Visa (subclass 186): This visa enables sponsorship by an Australian employer for permanent residency. The employer must prove their inability to find a suitable Australian worker for the position.
- Regional Sponsored Migration Scheme (subclass 187): This visa permits you to invest AUD 500,000 in a business situated in a regional area of Australia. You must also have a business plan and prove that your investment will generate employment or economic activity.
- Business Innovation and Investment Visa (subclass 188): This visa allows you to invest AUD 1.5 million in an Australian business. You must also formulate a business plan and demonstrate that your investment will create jobs or stimulate economic activity.
The most reliable approach to ascertain your eligibility for permanent residency in Australia is to consult with an immigration lawyer or consultant. They can evaluate your unique circ*mstances and offer guidance on the most suitable visa option for your situation.
Can a US citizen overseas buy a house in Australia?
Yes, a US citizen overseas can buy a house in Australia. However, there are some restrictions that you need to be aware of.
- You will need to get approval from the Foreign Investment Review Board (FIRB). The FIRB is a government body that regulates foreign investment in Australia. They will assess your application and decide whether or not to approve it.
- You will be subject to foreign buyer taxes. These taxes can be significant, so it is important to factor them into your budget.
- You may have difficulty getting a mortgage if you are a non-resident. Banks are more likely to lend to borrowers who have a valid visa and a permanent address in Australia.
- You will need to have a valid visa to live in Australia if you want to manage your property personally. If you do not have a visa, you will need to appoint a property manager to manage your property on your behalf.
Here are some additional things to keep in mind if you are considering buying Australian property as a non-resident. You will need to:
- Do your research and understand the Australian property market.
- Find a reputable real estate agent who can help you with the purchase process.
- Have a clear understanding of the terms of the purchase agreement.
- Be prepared to pay for the costs of buying and owning property in Australia.
If you are serious about buying a house in Australia, speaking with an immigration lawyer or consultant is recommended. They will be able to advise you on the specific requirements that you need to meet and help you navigate the process.
What is the Investor Visa in Australia?
There are many options for the Investor Visa in Australia, each with its own requirements and benefits. Here’s a summary of the main ones.
Business Innovation and Investment (BIIP) Program (Subclass 188)
- Streams: Investor, Entrepreneur, Significant Investor, Business Innovation.
- Investment Requirements: Varies by stream, but typically from $1.5 million to $5 million invested in complying Australian investments.
- Residency Requirements: Varies by stream, but typically 2 to 5 years with residency obligations.
- Benefits: Pathway to permanent residency, business and investment opportunities, family migration options.
Investor visa (Subclass 891)
- Requirements: Hold a qualifying BIIP visa for at least 4 years, invest $1.5 million for 4 years, live in Australia for 2 of the past 4 years.
- Benefits: Permanent residency with no ongoing investment or residency requirements.
Key Considerations
- Investment Options: Approved BIIP investments include venture capital funds, angel investments, direct investments in Australian businesses, and government bonds.
- Application Process: Can be complex and require significant documentation. It’s recommended to seek professional advice from immigration lawyers or migration agents.
- Costs: Visa fees, legal fees, living expenses, and investment costs should be factored in.
This is only some basic information about the investor visa in Australia. For more information, check out the Australian Government Department of Home Affairs website.
