Investing in Australia and New Zealand Real Estate: Rules for Non-Residents

Foreigners Buying Australian Property
Australia restricts what real estate non-residents can buy. Essentially it is lot easier to invest in commercial property than it is residential property: the Australian government sees an economic benefit for investment in commercial operations but is less clear on the benefits for Australia for non-residents investing in residential real-estate. The rules are complex and the details can be found Foreign Investment Review Board

Australian permanent residents, citizens and New Zealand citizens, but not New Zealand permanent residents, can buy any property they wish. This also affects couples one of whom is not an Australian permanent resident or citizen.

Non-residents will require approval from FIRB which will only be given in the following circumstances when:

• buying a property “off the plan” this is a newly built property either an apartment or house: the house must not be "second hand".
• buying residential land and build themselves.
• substantially renovating an existing property. Renovation is at least 50% of the cost of the land.
• they intend to use the property as their only residence.

Foreigners buying an Australian property that doesn't fit the above criteria will generally have to insist that FIRB approval is a condition of the sale contract. The FIRBA may take up to 90 days to make the decision considerably slowing down the settlement - most residential property in Australia settles within six weeks of agreement.
Temporary residents on long-stay visas, longer than 1 year, are allowed to buy an established house but only if they intend to live in itself and not for rental purposes. The house must be sold when their visa expires or they cease to reside in Australia.

Foreigners Buying New Zealand Property
In contrast New Zealand allows foreigners (resident or non-resident) to buy almost any amount and type of real estate. Land Information New Zealand states that the only limitation to real estate purchases for foreigners is in "sensitive land" - this in reality are iconic large rural blocks including off-shore islands. In reality any urban, and almost all rural property can be purchased by foreigners.

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