Buying houses in Sydney – house buyers’ guide

As with elsewhere in the country, the Australian government requires all foreigners intending to acquire real estate in Sydney to seek prior approval from the government through the Foreign Investment Review Board (FIRB) unless specifically exempted by the Foreign Acquisitions and Takeovers Regulations. Further, all contracts by foreign persons to acquire interests in Australian real estate must be made conditional upon foreign investment approval, unless approval was obtained prior to entering into the contract. For properties to be purchased at auction, prior foreign investment approval must still be obtained and advise provided whether the parties were successful or not, and if so, a copy of the signed contract forwarded to the Foreign Investment Review Board (FIRB) after the auction. Once approved, foreigners are allowed to buy only brand new residential developments. Only Australians and PRs are allowed to buy on the secondary market. A key exemption though, is that foreigners who own properties certified as Integrated Tourism Resorts (ITR) are not required to have foreign investment approval on either land or unit purchases. However, for resorts designated as ITRs from September 1999, the exemption only applies to developed residential property which is subject to a long term (ten years or more) lease to the resort/hotel operator, making the property available for tourist accommodation when not occupied by the owner.

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