Can temporary visa holders buy property in Australia?

The one established dwelling rule

The core rule is straightforward: a temporary visa holder can purchase one established dwelling in Australia to use as their principal place of residence, with FIRB approval (FIRB Guidance Note 3).

Several conditions attach to this permission. The property must be used as the visa holder's principal place of residence — not as an investment property. The property cannot be rented out, either wholly or partially. This means no Airbnb, no renting out a spare room, and no leasing the property to tenants while you travel. Only one established dwelling can be held at a time under this provision. If you want to buy a different established dwelling, you must sell the existing one first (or apply for FIRB approval to retain the first and buy the second, which is generally not permitted for established dwellings).

The property must be sold within a specified period — typically 90 days — after the visa holder ceases to hold a valid temporary visa or leaves Australia permanently. If you are granted permanent residency while owning the property, this condition ceases to apply because you are no longer a foreign person.

Which visa types qualify

The established dwelling provision applies to holders of any temporary visa that permits the holder to remain in Australia for more than 12 months. This includes subclass 482 (Temporary Skill Shortage), subclass 500 (Student — though financing a property purchase on a student visa is practically difficult), subclass 485 (Temporary Graduate), subclass 494 (Skilled Employer Sponsored Regional), subclass 417 and 462 (Working Holiday Maker — though the limited visa duration makes this unusual), and bridging visas in some circumstances (if the holder is awaiting a decision on a substantive visa application).

Short-stay visa holders (tourist visas, business visitor visas) generally cannot use this provision because their visa duration is too short to establish a principal place of residence.

Buying new dwellings on a temporary visa

Temporary visa holders can also buy new dwellings, and this is not limited to one property. New dwelling purchases are not subject to the residence condition — the property can be used as a residence or rented out as an investment.

FIRB approval is still required for each new dwelling purchase, and the application fee applies each time. State foreign buyer surcharges also apply to new dwelling purchases.

This means a temporary visa holder could theoretically buy one established dwelling as their home and one or more new dwellings as investments, provided FIRB approval is obtained for each and the foreign buyer surcharges are affordable.

The cost of buying on a temporary visa

The additional costs of buying property as a temporary visa holder compared to an Australian citizen or permanent resident are significant.

FIRB application fee: AUD 14,100 for properties up to AUD 1 million, increasing for higher values. This is a one-time cost per property.

Foreign buyer stamp duty surcharge: an additional 7–8% of the property value depending on the state, on top of the standard stamp duty. On a AUD 750,000 property in Victoria, the surcharge alone is AUD 60,000, plus standard stamp duty of approximately AUD 30,000.

Foreign owner land tax surcharge: an annual charge of 2–4% of the land value depending on the state. This applies for each year the property is owned while the owner remains a foreign person.

Vacancy fee: if the property is not occupied or available for rent for at least 183 days per year, an annual vacancy fee equal to the original FIRB application fee applies. For established dwellings used as the owner's residence, this typically does not trigger.

On a AUD 750,000 property in NSW, the total additional costs in the first year alone (FIRB fee plus stamp duty surcharge plus land tax surcharge) can exceed AUD 90,000 compared to what an Australian citizen would pay.

What happens when your visa changes

If you are granted permanent residency while owning property purchased as a temporary visa holder, the FIRB conditions on the property (residence requirement, sale obligation) cease to apply. You can then choose to continue living in the property, rent it out, or sell it — the same as any permanent resident.

The foreign buyer surcharges already paid (stamp duty surcharge at purchase) are generally not refunded. Some states have introduced partial refund or exemption schemes for buyers who transition to permanent residency within a specified period — these provisions change frequently and vary by state. Check with your conveyancer or the state revenue office.

The land tax surcharge ceases to apply from the date you are no longer a foreign person (the date of PR grant). You may need to notify the state revenue office of your changed status to ensure the surcharge is removed from your land tax assessment.

If your temporary visa expires and you do not obtain a further visa or permanent residency, you must sell the property. The sale must occur within the timeframe specified in your FIRB approval conditions — typically 90 days. If you do not sell voluntarily, the government can seek a forced divestiture order through the courts.

Practical considerations

Financing is harder on a temporary visa. Most major banks apply stricter lending criteria to temporary visa holders, including lower loan-to-value ratios and higher interest rates. Some lenders will not lend to temporary visa holders at all. Non-bank lenders may offer more flexible terms but at higher rates.

The sale obligation creates uncertainty. If your visa expires unexpectedly — for example, if a PR application is refused — you may be forced to sell in a timeframe that does not align with market conditions. Selling under time pressure can result in a lower sale price.

The surcharges make the breakeven period longer. The additional costs of FIRB fees and surcharges mean that you need to hold the property for longer (or see greater capital appreciation) to break even compared to an equivalent purchase by a permanent resident.

For many temporary visa holders, the financial analysis favours renting until permanent residency is granted, and then purchasing without the surcharges. However, this depends on individual circumstances — the rental market, property price trajectory, the expected timeline for PR, and personal preferences all factor in.

Can I rent out a room in my established dwelling while living there?

No. The FIRB condition requires the property to be used solely as your principal place of residence and not rented out, even partially. Renting out a room breaches the FIRB conditions.

What if I buy an established dwelling and then my partner visa is granted?

If you receive permanent residency, the FIRB conditions cease to apply. You no longer need to sell the property, and you can rent it out if you choose. The stamp duty surcharge paid at purchase is generally not refunded.

Can I buy a property with a friend or family member on a temporary visa?

If any party to the purchase is a foreign person, FIRB approval is required. The established dwelling rule applies per foreign person — each temporary visa holder can buy one established dwelling as their residence. Joint purchases between foreign persons are assessed on a case-by-case basis.

Do I pay capital gains tax when I sell?

If you are an Australian tax resident when you sell, any capital gain is assessable. If you have held the property for more than 12 months, you may be eligible for the 50% CGT discount. If the property was your principal place of residence for the entire period of ownership, the main residence exemption may apply (temporary residents have specific rules around this — consult a tax agent).

Can I buy vacant land and build on a temporary visa?

Yes, with FIRB approval. You must commence construction within 24 months. The same foreign buyer surcharges apply to the land and the completed dwelling.