New vs Established Property: Complete Guide for Foreign Buyers in Australia 2025

Last updated: 5 January 2025 | 12 min read

Choosing between new and established property is one of the most critical decisions for foreign investors in Australia—and it's not just about personal preference. Your foreign investment status fundamentally determines what you can buy, with FIRB rules creating vastly different pathways for each property type.

This comprehensive guide compares new versus established properties across every dimension that matters: FIRB eligibility, costs, investment returns, tax implications, and long-term strategy. By the end, you'll know exactly which option suits your situation.

Understanding the Critical Definitions

Before diving into comparisons, you need to understand exactly how FIRB classifies properties—because these definitions determine what you can legally purchase.

What is a "New Dwelling"?

A property qualifies as a "new dwelling" if it meets ANY of these criteria:

1. Never Previously Sold as a Dwelling

• Brand new construction that has never been sold
• House built on vacant land and never occupied
• Apartment in a new development, never settled

2. Never Previously Occupied

• Has been built but never lived in
• Applies even if technically "completed" months ago
• Must truly be unoccupied—not even short-term rentals

3. Substantially Renovated and Unoccupied

• Property has undergone substantial renovation
• Has not been occupied since the renovation
• AND has not been occupied for more than 12 months total since construction

Common examples of new dwellings:

✅ Off-the-Plan Apartment

• Purchased before completion
• Never previously occupied
• Bought directly from developer

✅ House-and-Land Package

• Vacant land purchased with building contract
• House constructed to your specifications
• First occupants will be you or your tenants

✅ Recently Completed Display Home

• Used only as display (not residential occupation)
• Being sold by developer
• Never actually lived in as a home

✅ Newly Constructed Townhouse

• Part of new development
• Just completed, never occupied
• Selling through developer or immediately after

✅ Substantially Renovated Property

• Completely gutted and rebuilt
• Has been empty since renovation (under 12 months)
• Effectively a "new" home in an old structure

Example of what counts as new: A developer demolishes an old house, builds a modern four-bedroom home, and sells it before anyone moves in. Despite being on the same land as an old dwelling, the new house qualifies as a "new dwelling" for FIRB purposes.

What is an "Established Dwelling"?

An established dwelling is simply: any dwelling that is NOT a new dwelling.

This includes:

❌ Existing Houses

• Any house previously lived in
• Properties sold on the secondary market
• Homes purchased from private sellers

❌ Second-Hand Apartments

• Units previously owned and occupied
• Apartments purchased from other owners (not developer)
• Any "used" residential property

❌ Townhouses and Duplexes

• If previously occupied or sold
• On the secondary market

❌ Substantially Renovated BUT Occupied 12+ Months

• Even if recently renovated
• If been lived in more than 12 months since completion
• No longer qualifies as "new"

The key test: Has the dwelling been previously sold as a place to live, or has it been occupied as a home?

If yes to either → Established dwelling If no to both → New dwelling

Grey Areas and Special Cases

What about properties sold by developer but previously occupied? If an apartment in a building was completed 2 years ago and someone has lived in it, it's established—even if the developer still owns unsold units in the same building. Each unit is assessed individually.

What about display homes? If used ONLY for display purposes (not actual residential living), can qualify as new. But if someone actually lived in it, it becomes established.

What about commercial properties converted to residential? If converting commercial to residential and never previously used as a dwelling, can qualify as new. Complex rules apply—seek specialist advice.

Current FIRB Rules: The Game-Changing Difference

This is where new and established properties diverge dramatically for foreign buyers.

FIRB Rules for New Dwellings

Who Can Buy:

• ✅ Foreign nationals (non-residents)
• ✅ Temporary residents (all visa types)
• ✅ Anyone classified as a "foreign person"

Requirements:

• FIRB approval required for each purchase
• No limit on number of properties
• Can buy for investment OR owner-occupation
• Application fee based on property value ($15,100 to $1.2M+)

Why it's allowed: The Australian government actively encourages foreign investment in new dwellings because it:

• Increases housing stock
• Creates construction jobs
• Stimulates economic activity
• Doesn't reduce availability for Australian buyers

Process:

1. Find suitable new dwelling
2. Apply for FIRB approval (or check developer exemption certificate)
3. Pay FIRB application fee
4. Wait for approval (typically 30 days)
5. Proceed with purchase

Developer Exemption Certificates: Many developers obtain exemption certificates for their projects. If buying from such a developer:

• You don't need individual FIRB approval
• Still must notify ATO within 30 days of purchase
• Significantly streamlines the process
• Same fees apply (collected by developer)

FIRB Rules for Established Dwellings

⚠️ CRITICAL: TEMPORARY BAN IN EFFECT

From April 1, 2025 to March 31, 2027:

Who CANNOT Buy:

• ❌ Foreign nationals
• ❌ Temporary residents (including students, 482 visa holders, all others)
• ❌ Foreign-owned companies
• ❌ Foreign trusts

This means:

• Cannot purchase ANY established dwelling
• Even if you want to live in it as primary residence
• Even if you're a temporary resident who previously could buy one
• Applies across all of Australia

Very Limited Exceptions:

Only these specific categories can potentially purchase established dwellings:

1. Large-Scale Redevelopment Projects

• Must increase housing stock by at least 20 additional dwellings
• Requires comprehensive redevelopment application
• Must demonstrate genuine intent and capability
• Not suitable for typical residential purchases

2. Build-to-Rent Developments

• Must meet specific BTR criteria
• Minimum number of dwellings
• Long-term rental requirements
• Commercial-scale projects only

3. Pacific Australia Labour Mobility Scheme

• Properties for seasonal workers
• Very specific circumstances
• Limited applicability

None of these exceptions apply to regular foreign buyers wanting to purchase a home or investment property.

Historical Context (Pre-April 2025)

Understanding the old rules helps with future planning:

Temporary Residents (Before the Ban):

• Could purchase one established dwelling
• Must be used as primary residence
• Had to sell within 3 months of:
  • Moving out, OR
  • Visa expiring, OR
  • Leaving Australia
• Could NOT be used as investment
• Could NOT rent it out

Non-Resident Foreign Persons (Before the Ban):

• Generally could NOT purchase established dwellings
• Very limited exceptions existed
• Focused on new dwellings and vacant land

Post-March 2027: The government will review the ban. Rules may:

• Return to pre-April 2025 status
• Continue the ban
• Implement modified restrictions

Strategic implication: Foreign buyers should monitor policy announcements in late 2026/early 2027 if interested in established dwellings.

Cost Comparison: The True Price Difference

Beyond the purchase price, new and established properties carry different cost structures. Understanding these is crucial for accurate investment analysis.

Purchase Costs Comparison

Let's compare a $800,000 property purchase in NSW:

Cost Item	New Dwelling	Established Dwelling*
Property Price	$800,000	$800,000
Stamp Duty (NSW)	~$31,090	~$31,090
Foreign Buyer Surcharge	$72,000 (9%)	$72,000 (9%)
FIRB Application Fee	$30,300	$45,300 (tripled rate)
Building Inspection	Often N/A (new construction warranty)	$600-$1,000
Pest Inspection	Often N/A	$300-$500
Legal/Conveyancing	$2,000-$3,000	$2,000-$3,000
Mortgage Registration	~$150	~$150
Transfer Fees	~$200	~$200
TOTAL UPFRONT	~$935,740	~$951,740

*Note: Established dwellings currently banned for foreign buyers. Figures shown for comparison purposes only.

Key observations:

1. FIRB Fees are Tripled for Established Dwellings When permitted, established dwelling FIRB fees are 3x higher:

• $800K property: $30,300 vs $45,300 (15K difference)
• $2M property: $90,900 vs $181,800 ($90K difference)

2. Inspection Costs Only Apply to Established New dwellings come with construction warranties, eliminating need for pre-purchase inspections.

3. GST Considerations

• New dwellings: Purchase price may include GST
• Established dwellings: No GST on the sale itself
• Can affect loan calculations and deductibility

Ongoing Holding Costs

After purchase, ownership costs differ significantly:

Cost Category	New Dwelling	Established Dwelling
Strata Fees	$3,000-6,000/year	$2,500-5,000/year*
Council Rates	Similar	Similar
Land Tax	Same calculation	Same calculation
Foreign Land Tax Surcharge	Applies equally	Applies equally
Maintenance	Minimal first 5-10 years	$2,000-5,000+/year
Insurance	Lower (new = less risk)	Higher (age = more risk)
Vacancy Fee	If vacant 183+ days	If vacant 183+ days

*Established strata fees often lower as building already amortized sinking fund contributions.

Maintenance differences are significant:

New dwelling (Years 1-10):

• Builder's warranty covers major defects
• Minimal maintenance required
• Modern, efficient systems
• Estimated: $500-1,500/year

Established dwelling (Varies by age):

• Hot water system replacements ($1,500-3,000)
• Appliance repairs/replacements
• Painting, repairs, wear and tear
• Estimated: $2,000-5,000+/year

Over 10 years:

• New dwelling maintenance: ~$10,000
• Established dwelling maintenance: ~$35,000
• Difference: $25,000

Tax Deductions: A Key Advantage for New

This is where new dwellings offer significant advantages for investors.

Depreciation Benefits:

New Dwelling:

• Building depreciation: 2.5% per year for 40 years
  • $800K property, ~$300K building value
  • Depreciation: ~$7,500/year
• Fixtures & fittings: Much higher for new
  • Carpet, blinds, appliances, air con
  • Estimated additional: $3,000-5,000/year
• Total annual depreciation: $10,500-12,500
• Over 10 years: $105,000-125,000 in deductions

Established Dwelling (Built pre-1987):

• No building depreciation (if built before Sept 1987)
• Limited fixtures depreciation (existing items already depreciated)
• Total annual depreciation: $0-2,000
• Over 10 years: $0-20,000 in deductions

Established Dwelling (Built post-1987):

• Building depreciation: Remaining portion only
• Fixtures depreciation: Limited to newer items
• Total annual depreciation: $3,000-6,000
• Over 10 years: $30,000-60,000

Tax savings (at 45% marginal rate + 2% Medicare levy):

• New dwelling: ~$49,350-58,750 over 10 years
• Established (post-1987): ~$14,100-28,200 over 10 years
• Established (pre-1987): ~$0-9,400 over 10 years

Difference: $30,000-50,000+ over 10 years

Investment Potential: Returns and Growth Analysis

Let's analyze the investment case for each property type.

Capital Growth Potential

Established Dwellings (Advantages):

1. Prime Locations

• Often in established, desirable suburbs
• Close to CBDs, beaches, parks
• Proven demand over decades
• Infrastructure already in place

2. Land Value Appreciation

• Growth driven by land component
• Limited supply in established areas
• Historical performance track record

3. Immediate Liquidity

• Can sell to wider market (not just foreign buyers)
• Established demand and comparable sales
• Less risk of oversupply

Typical growth rate: 6-8% annually in established inner suburbs

New Dwellings (Advantages):

1. Modern Appeal

• Attracts quality tenants
• Higher rental premiums initially
• Lower maintenance costs

2. Growth Corridors

• Often in developing areas
• Potential for infrastructure boosts
• May benefit from urban expansion

3. Initial Depreciation Risk

• May experience initial value stagnation
• "New" premium dissipates quickly
• Need to hold 7-10+ years for solid returns

Typical growth rate: 4-6% annually, with higher volatility

Rental Yield Comparison

Established Dwellings:

Advantages:

• Proven rental history in area
• Established tenant demand
• Often closer to employment centers

Yields:

• Inner established suburbs: 2.5-3.5%
• Middle ring suburbs: 3.5-4.5%
• Outer suburbs: 4.5-5.5%

Challenges:

• Higher maintenance affects net yield
• Older properties may have vacancy periods during repairs
• Tenant preferences shifting to newer properties

New Dwellings:

Advantages:

• Lower maintenance reduces costs
• Modern features attract quality tenants
• Can charge premium rent initially
• Energy efficiency appeals to renters

Yields:

• New apartments in CBD: 3.5-4.5%
• New houses in growth corridors: 4.5-5.5%
• Master-planned communities: 4.0-5.0%

Challenges:

• Oversupply risk in some areas
• Rental premium erodes as property ages
• Longer tenancy crucial to offset higher entry cost

Risk Analysis

New Dwelling Risks:

1. Oversupply

• Multiple developments in same area
• Too many similar properties
• Rental and capital growth suppression
• Mitigation: Research planned developments, choose diverse areas

2. Off-the-Plan Specific Risks

• Completion delays
• Developer insolvency
• Changes to plans/specifications
• Market value shifts between contract and completion
• Mitigation: Research developer, use established developers, include protective clauses

3. Sunset Clauses

• Developer can cancel if not complete by date
• You may not get full benefit of capital growth
• Market may have moved significantly
• Mitigation: Negotiate favorable sunset dates, understand your rights

4. Valuation Risk

• Bank valuation may come in lower than purchase price
• Affects loan amount available
• May need larger deposit
• Mitigation: Compare with recent sales, avoid paying significant premiums

5. Quality Issues

• Construction defects
• Body corporate disputes over defects
• Builder warranty claims process
• Mitigation: Research builder, understand warranty, budget for potential issues

Established Dwelling Risks:

1. Maintenance and Unexpected Repairs

• Hidden structural issues
• Aging infrastructure requiring replacement
• Expensive surprises (plumbing, electrical, roofing)
• Mitigation: Comprehensive inspections, maintenance reserve fund

2. Limited Foreign Buyer Market

• Cannot sell to foreign buyers (currently)
• Reduces potential buyer pool
• May affect resale value
• Mitigation: Buy in areas with strong domestic demand

3. Rental Property Condition

• May need updating to attract tenants
• Renovation costs to maintain competitiveness
• Tenant expectations rising toward newer properties
• Mitigation: Budget for periodic updates, choose well-maintained properties

4. Energy Efficiency

• Higher utility costs affect tenant appeal
• May need to upgrade to remain competitive
• Environmental regulations tightening
• Mitigation: Choose properties with good energy ratings, budget for efficiency upgrades

Financing Considerations

How easy is it to get a mortgage for each property type?

New Dwelling Financing

Advantages:

• Banks generally prefer new properties
• Lower loan-to-value ratio (LVR) restrictions
• May accept pre-sale contract for pre-approval
• Developer often has relationship with specific lenders

Typical terms for foreign buyers:

• LVR: 60-70% (30-40% deposit)
• Interest rates: 6.5-8.0%
• Loan term: 20-30 years

Challenges:

• Bank valuation may come in low for off-the-plan
• May need to cover gap between contract price and valuation
• Construction loans different from standard mortgages (if land + build)

Established Dwelling Financing

Advantages:

• Property already exists (certain valuation)
• Immediate rental income starts
• No completion risk

Typical terms for foreign buyers:

• LVR: 60-70% (30-40% deposit)
• Interest rates: 6.5-8.0%
• Loan term: 20-30 years

Challenges:

• Limited lenders willing to finance foreign buyers
• Stricter serviceability requirements
• May require larger deposit if older property

Practical Financing Tip

Many foreign buyers find:

• New dwellings: Easier approval process, better lender options
• Established dwellings: More conservative lending, fewer willing lenders

If financing is crucial to your purchase, new dwellings typically provide smoother path.

Strategic Recommendations by Investor Type

Different investors should favor different property types based on their goals and constraints.

Profile 1: Student Visa Holder (3-4 Year Timeframe)

Recommended: New Dwelling (Off-the-Plan Apartment)

Why:

• Only option during current ban
• Depreciation benefits maximize tax returns
• Low maintenance while studying
• Can sell to other foreign buyers when leaving

Location strategy:

• Near university
• Good public transport
• Rental demand from other students

Example: Buy 2-bed apartment near University of Melbourne for $550,000. Live in one room, rent the other to fellow student. Depreciation offsets rental income tax. Sell to another foreign buyer after graduation.

Profile 2: Temporary Skilled Worker (Long-term, PR Pathway)

Recommended: New Dwelling in Growth Corridor OR Wait for PR

Why:

• If PR expected within 1-2 years, waiting eliminates FIRB restrictions
• If buying now, new dwelling offers flexibility
• Growth corridor provides capital appreciation potential
• Can retain as investment after getting PR

Location strategy:

• Areas with infrastructure investment
• Future transport links
• Master-planned communities

Example: 482 visa holder expecting PR in 18 months. Buy house-and-land package in outer Melbourne growth corridor for $650,000. Rent out until PR granted, then decide whether to live in or retain as investment.

Profile 3: Foreign National (Offshore Investor)

Recommended: New Dwelling - Strategic Portfolio Approach

Why:

• Only option currently available
• Depreciation maximizes returns
• Professional property management essential
• Build diversified portfolio over time

Location strategy:

• Proven rental markets
• Near employment centers
• Transport accessibility
• Minimal oversupply risk

Example: Hong Kong-based investor builds portfolio of 3 new apartments over 5 years: Sydney CBD ($750K), Melbourne Southbank ($680K), Brisbane Fortitude Valley ($520K). Professional management, depreciation benefits, geographic diversification.

Profile 4: High Net Worth Investor (Premium Market)

Recommended: New Dwellings in Prestige Developments

Why:

• Access to premium locations via new luxury developments
• Top-quality finishes and amenities
• Attracts executive tenants
• Strong resale potential

Location strategy:

• Waterfront developments
• CBD prestige towers
• Master-planned estates
• Golf course communities

Example: Ultra-high-net-worth investor purchases $2.5M penthouse in new Sydney Harbour development. Premium rental to executive tenants. Holds for 10+ years for long-term capital appreciation.

Profile 5: Family Planning Migration

Recommended: New House-and-Land (Owner-Occupation Focus)

Why:

• Suitable for family living
• Can move in immediately upon migration
• Modern, low-maintenance
• School proximity crucial

Location strategy:

• Good school zones
• Family-friendly suburbs
• Parks and amenities
• Chinese/Asian communities (if preferred)

Example: Family planning migration in 2 years buys new 4-bed house in Chatswood (Sydney) for $1.4M. Rent out short-term until migration. Move in with family upon arrival. No need to sell (unlike established dwelling restrictions).

Making Your Decision: A Practical Framework

Use this decision tree to determine which property type suits you:

Step 1: Check Your Eligibility

Are you a foreign person?

• No (Australian citizen/PR) → Can buy either, skip to Step 3
• Yes → Continue to Step 2

Step 2: Current FIRB Reality Check

Can you legally purchase established dwellings?

• No (April 2025 - March 2027 ban applies) → Must choose new dwelling
• Yes (after ban ends, or qualifying exception) → Continue to Step 3

Step 3: Investment Horizon

How long do you plan to hold?

Less than 5 years:

• Risk: New dwellings may not appreciate significantly
• Better choice: Established in proven location (if available)
• Reality check: Capital growth limited in short term for new

5-10 years:

• Either option viable
• New dwelling depreciation benefits valuable
• Established location advantage matters

10+ years:

• New dwellings catch up on capital appreciation
• Tax benefits compound
• Less maintenance means lower costs

Step 4: Tax Strategy

Is maximizing tax deductions important?

Yes, need strong deductions:

• Clear winner: New dwelling
• Depreciation provides $10,000-15,000+ annual deductions
• Significantly improves after-tax returns

No, not concerned about tax:

• Established dwelling more attractive (when permitted)
• Focus on land value and location

Step 5: Risk Tolerance

How do you feel about development risk?

Low risk tolerance:

• Avoid off-the-plan
• Consider completed new dwellings only
• Or established property in proven location

Moderate risk tolerance:

• Off-the-plan from established developers acceptable
• Research track record carefully
• Include protective clauses

High risk tolerance:

• Off-the-plan in emerging areas
• Potential for higher returns
• Accept volatility

Step 6: Financing Requirements

Do you need a mortgage?

Yes, financing crucial:

• New dwellings generally easier for foreign buyers
• More lenders willing to finance
• Better LVR availability

No, cash purchase:

• Financing not a differentiator
• Focus on investment merit

Real-World Examples: Learning from Others

Success Story: New Dwelling Strategy

Investor: Lisa Chen, Singapore Purchase: Off-the-plan 2-bed apartment, Melbourne CBD Price: $620,000 (purchased 2020) Strategy: Buy off-the-plan, rent to professional tenants

Results after 5 years:

• Current value: $715,000 (+15% growth)
• Annual rent: $28,000 (4.5% gross yield)
• Depreciation saved: ~$50,000 in tax over 5 years
• Total maintenance: Less than $3,000
• Net position: Strong positive returns

Key learnings:

• Chose oversupplied area (many similar apartments)
• Growth moderate but tax benefits significant
• Low maintenance crucial for offshore management
• Would repeat strategy in less saturated market

Challenge Story: Established Dwelling Mistake

Investor: Wei Zhang, China (temporary resident, pre-ban) Purchase: Established 3-bed house, outer Sydney suburb Price: $850,000 (purchased 2022) Strategy: Live in during study, sell when returning to China

Challenges encountered:

• Hidden structural issues discovered ($15,000 repairs)
• Visa expired sooner than expected
• Forced to sell within 3 months
• Market had softened
• Sold for $820,000 (5-year hold cut short)

Total loss:

• Purchase price: $850,000
• Stamp duty: ~$100,000 (base + foreign surcharge)
• Repairs: $15,000
• Selling costs: ~$25,000
• Sale price: $820,000
• Total loss: ~$170,000

Key learnings:

• Should have bought new dwelling (no forced sale)
• Underestimated visa timing risk
• Property inspection missed issues
• Market timing risk when forced to sell

Balanced Strategy: Portfolio Approach

Investor: Michael Liu, Hong Kong Strategy: Build diversified portfolio over 10 years

Portfolio (as of 2025):

1. New apartment, Brisbane CBD ($480,000 - purchased 2018)
2. New apartment, Melbourne Southbank ($650,000 - purchased 2020)
3. House-and-land, Sydney growth corridor ($820,000 - purchased 2023)

Total invested: $1.95M Current value: $2.45M (+25% overall) Combined rental: $95,000/year (4.8% gross yield)

Strategy benefits:

• Geographic diversification
• All new dwellings (maximum depreciation)
• Professional management across all properties
• No forced sales (not temporary resident)
• Building wealth in multiple markets

Key learnings:

• Spread risk across cities and property types
• New dwelling strategy provided consistency
• Tax benefits substantial across portfolio
• Would continue similar approach

Common Questions Answered

Q: Is off-the-plan always a bad idea?

A: No, but requires careful selection. Look for:

• Established developer with good track record
• Limited competing supply in area
• Strong underlying demand fundamentals
• Reasonable pricing compared to completed comparables
• Protective contract clauses

Many successful investors use off-the-plan strategically, especially in supply-constrained areas with strong demand.

Q: Can I renovate an established property to make it "new"?

A: Potentially, but it's complex:

• Must be "substantially renovated"
• Cannot be occupied for 12+ months after renovation
• FIRB may scrutinize the claim
• Typically not worth it for most investors
• Simpler to buy genuine new dwelling

Q: What happens to my new dwelling after 10 years—does it become established?

A: For FIRB purposes:

• A property sold as "new" remains treated as such
• Future sales (you selling it later) would be as "established"
• But by then, if you have PR, FIRB doesn't matter
• Focus on investment merit at that point

Q: Should I wait until the established dwelling ban ends to buy?

A: Depends on your situation:

• If you want established property specifically: Maybe
• But waiting means:
  • Missing 2+ years of potential growth
  • Missing tax benefits (if investing)
  • No certainty ban will end
  • Rules might not return to previous status

For most foreign buyers, purchasing available new dwellings now is the better strategy.

Q: Are new apartments always in oversupplied areas?

A: No, but common issue in some markets:

• Research planned supply in area
• Check current rental vacancy rates
• Assess underlying demand drivers
• Avoid areas with 5+ new towers simultaneously marketing

Many new developments in supply-constrained locations offer excellent opportunities.

Key Takeaways

For Most Foreign Buyers Right Now:

1. New dwellings are your only realistic option during the April 2025 - March 31, 2027 ban period
2. Significant advantages exist for new dwellings:
   • Depreciation benefits worth $30,000-50,000+ over 10 years
   • Lower maintenance costs
   • Modern features attract better tenants
   • Easier financing for foreign buyers

3. Established dwellings have merit but unavailable:

   • Better locations typically
   • Proven capital growth
   • Currently inaccessible to foreign buyers

4. Off-the-plan requires careful due diligence:

   • Research developer track record
   • Assess oversupply risk
   • Include protective contract clauses
   • Don't overpay relative to comparables

5. Tax strategy matters significantly:

   • Depreciation on new dwellings provides substantial benefit
   • Can make difference between positive and negative cash flow
   • Compounds over years

6. Location always trumps property type:

   • Better a new dwelling in great location
   • Than established in poor location
   • Focus on demand drivers, infrastructure, schools

7. Your personal situation determines best choice:

   • Temporary resident planning to stay: New dwelling flexibility
   • Offshore investor: New dwelling, professional management
   • PR pathway likely: Consider waiting or buy new now
   • Long-term wealth building: New dwelling portfolio approach

Your Next Steps

Immediate Actions

1. Verify your FIRB status and what you can legally purchase

2. Calculate total costs for new dwelling purchases using the PropertyCosts FIRB Calculator
3. Research target locations focusing on:
   • Rental demand indicators
   • Planned infrastructure
   • Oversupply risk factors
   • Comparable sales data

4. Assess your investment timeline

   • How long will you hold?
   • Tax considerations?
   • PR pathway timing?

Before Purchasing

5. For off-the-plan:

   • Research developer thoroughly (past projects, completion rates, quality)
   • Review contract carefully with lawyer
   • Understand sunset clauses
   • Check bank will lend on property

6. For completed new dwellings:

   • Obtain independent valuation
   • Check comparable recent sales
   • Assess rental demand empirically
   • Inspect property and building quality

7. Tax planning:

   • Engage quantity surveyor for depreciation schedule
   • Understand tax implications in home country
   • Structure ownership appropriately
   • Consider depreciation strategy

During Ownership

8. Quality property management essential for offshore investors

9. Maintain compliance with FIRB conditions (if applicable)
10. Regular portfolio review to assess performance and strategy

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This guide is for informational purposes only and does not constitute financial, legal, or investment advice. Property markets and regulations change. Always seek professional advice specific to your circumstances and verify current FIRB rules before making investment decisions.

Last verified: January 5, 2025 Sources: FIRB Official Guidance, ATO, State Revenue Offices, Property Market Data