New FIRB Rules – What does this mean for buyers.

Written By Rachael Thompson

The Quick Facts ……for the time poor.

  • New rules come into effect 1st April 2025: Foreign buyers can’t buy established homes until at least 31 March 2027.

  • Why?: To make more homes available to Australian residents.

  • Exceptions: Some overseas buyers may still qualify if they’re “ordinary residents.”

  • Who Qualifies?: Lived in Australia for 200+ days in the past year and have no time limit on staying.

  • Temporary Residents: Most will no longer be eligible to buy existing homes.

  • Impact:

    • Foreign buyers: More limits.

    • Aussie buyers: Less competition.

    • Agents & mortgage brokers: Check buyer status early.

  • Need clarity? Contact Convey Legal — we’re here to help.

 

 

Important Changes to Foreign Investment in Australian Real Estate: What You Need to Know

Written by:  Eilidh McCallum – Solicitor |  Convey Legal

Published 28th March 2025 

For many years, foreign investors have generally been restricted from purchasing established homes in Australia. While there were some exceptions—such as temporary residents who could apply for approval to buy a property as long as it was their primary place of residence—this process still required approval from the Foreign Investment Review Board (FIRB). Without it, penalties could follow.

A New Ban on Foreign Buyers

On February 16, 2025, the Australian Government made a major announcement that will affect foreign buyers. Starting from 1 April 2025, foreign persons will be banned from purchasing established homes in Australia for a minimum of two years, currently ending on 31 March 2027. The Government has made it clear that the goal is to ensure that more Australians are able to buy homes that might have otherwise gone to foreign investors. While this change is for two years, it’s possible the ban could be extended beyond that timeframe. If you wish to read more, you can access that announcement here.

So, Who's Affected and Who Isn't?

This ban will likely impact most foreign buyers, but there are still situations where someone who might be considered "foreign" could still purchase a property. For instance, if someone is deemed an “ordinary resident” in Australia, they could be allowed to buy established homes, even if they’re technically from overseas.

Who exactly is an “ordinary resident”? Here’s the definition:

(a)     the person has actually been in Australia during 200 or more days of the preceding 12-month period; and

(b)     at the relevant time:

  i.            the person is in Australia and the person’s continued presence in Australia is not subject to any limitation as to time imposed by law; or

ii.            the person is not in Australia, but, immediately before the person’s most recent departure from Australia, the person’s continued presence in Australia was not subject to any limitation as to time imposed by law.

If someone meets these conditions, they're more likely to be treated as an ordinary resident and could still buy a property, despite the foreign investment ban.

Why Does This Matter to You?

Whether you're a potential buyer or an industry professional, it's important to understand these changes.

·      If you're overseas but planning to stay in Australia long-term, you may still be able to buy a home.

·      If you're an Australian resident trying to buy your first home, this could mean less competition from foreign buyers, making it easier for you to get the property you want.

·       If you’re an industry professional, you may need to closely consider the status of a buyer prior to them signing a contract on a property.

 

Need Help Navigating the Rules?

If you're unsure how the new regulations apply to you or need help understanding your options, our team at Convey Legal is here to assist you every step of the way. We’re happy to provide clear advice, guide you through the process, and answer any questions you may have.

Don’t hesitate to contact us—we’d love to make your property journey smoother!

Telephone: 1300 433 703

Email: convey@conveylegal.com.au

 

Sam Zeitoune, Legal Director

sam.zeitoune@conveylegal.com.au

 

Eilidh McCallum, Solicitor

eilidh.mccallum@conveylegal.com.au

Disclaimer: The information on this publication is general and does not constitute advice of any nature and kind, including legal advice. You should seek your own advice, including legal advice, where appropriate.  Liability limited by a scheme approved under Professional Standards Legislation

Rachael Thompson