FIRB Approval Application

Gaining necessary Government Approvals

Foreigners are allowed to purchase certain categories of Australian residential real estate subject to approval being granted by the Foreign Investment Review Board (FIRB). Approval is required irrespective of the value of the property or the nationality of the foreign purchaser.

When a foreigner makes a formal offer to Purchase the residential property in Australia, the offer must be made subject to gaining Foreign Investment Review Board Approval.

At Don Russell Homes our trained staff can complete the necessary application forms and lodge the FIRB application on your behalf.

The most common categories of residential property being purchased by Foreigners are listed below:

1) Vacant Land
Proposed acquisitions of vacant land for residential development are normally approved subject to development conditions which are imposed by the FIRB.
Acquisitions of single blocks of vacant land (that is, land which is zoned to permit the construction of no more than one residential dwelling per block of land) for the purpose of building a single residential dwelling on each block are normally approved subject to the following condition:
A) Continuous substantial construction must commence within 24 months.

Acquisitions of other vacant land (not single blocks) for the purpose of building multiple residential dwellings are normally approved subject to the following conditions:
A) continuous substantial construction must commence within 24 months; and
B) At least 50 per cent of the acquisition cost or the current market value of the land (whichever is higher) must be spent on development.
Once these conditions have been fulfilled, properties acquired under this category may be rented out, sold to Australian interests or other eligible purchasers, or retained for the foreign investor's own use.

2) New Dwellings
New dwellings acquired ‘off the plan’ (before construction commences or during the construction phase) or after construction is complete are normally approved where the dwellings:
A) have not previously been sold (that is, they are purchased from the developer); and
B) Have not been occupied for more than 12 months.
There are no restrictions on the number of such dwellings in a new development which may be sold to foreign persons, provided that the developer markets the dwellings locally as well as overseas (that is, the dwellings cannot be marketed exclusively overseas).
This category includes dwellings that are part of extensively refurbished buildings where the building's use has undergone a change from non-residential (for example, office or warehouse) to residential. It does not include established residential real estate that has been refurbished or renovated.
A property purchased under this category may be rented out, sold to Australian interests or other eligible purchasers, or retained for the foreign investor's own use. Once the property has been purchased, it is second-hand real estate and is subject to the restrictions applying to that category.

3) Second–Hand (Established) Dwellings
This category includes all residential dwellings which are not new dwellings (that is, they have been previously owned and/or they have been occupied for more than 12 months).
Acquisitions by individual(s)
Foreign persons are prohibited from acquiring established dwellings for investment purposes (that is, they cannot be purchased to be used as a rental or holiday property), irrespective of whether they are temporary residents in Australia or not.
Foreign persons who are temporary residents in Australia do not require approval to acquire a second-hand dwelling as their principal place of residence.