Update on Temporary Residents’ Rights to Buy Homes in Australia

Moving to Australia, you may hope to recreate home with a comfortable living space in a neighbourhood you love. However, the latest restriction on migrants buying houses in Australia could impact your plan to do so. In February, the government announced plans to ban foreigners, including temporary residents, from buying existing properties. 

But what does this mean for temporary visa holders’ prospects and futures in Australia?  To provide you with a better understanding, we’ve explained the potential impacts on temporary visa holders and how you can work around it. But before this, learn more about the restriction below.

Can You Buy a House in Australia on a Temporary Visa?

As of 1 April 2025, temporary visa holders are banned from buying established houses or dwellings. However, they can still purchase vacant land and new developments subject to review by the Foreign Investment Review Board (FIRB). 

Why Is Australia Banning Foreigners From Buying Existing Homes?

The primary reason for restricting foreign investors from buying existing homes is to ease the pressure on the housing market. Here are some more reasons: 

1. Lower Housing Costs

Between 2022 and 2023, foreign investment in housing increased. A third of the purchases were existing homes. As a result, existing houses are more in-demand and expensive, making them less available and unaffordable for Australian citizens. The ban aims to reduce the demand and make existing homes more accessible for permanent residents and citizens. 

2. Encourage Young Buyers 

Limiting foreign investment and competition could make housing more accessible and affordable for young Australian buyers. 

3. Increase New Developments

The restrictions on existing homes could encourage more investment in new development and vacant land to solve housing shortages in the long term.   

4. Reduce Speculative Buying 

The restriction will address purchasing investment properties that are not lived in and will not help with the housing shortages. Reducing this investment could ease the demand and free up homes for permanent residents and citizens. 

What are the Impacts on Temporary Visa Holders?

Here’s how the housing restriction could affect temporary residents:

• Limited housing options: Before, temporary visa holders could purchase a house with FIRB’s approval. With the ban, they will no longer be allowed to buy existing homes and will have fewer options. 
• Longer wait for properties: Temporary visa holders who want to own a home instead of renting must rely on new developments. While a prosperous investment, it can take longer to build a new home, and you may need to rent in the interim.  
• Focus on renting: Those hoping to buy in their temporary stay will have to focus on renting as it could be more affordable than purchasing vacant land to build. 

How Long Will the Restriction Last?

The housing restriction is in place until 31 March 2027, with a chance of being extended after review.  

How Can Permanent Residence Improve Your Chances of Buying a Home? 

Permanent residence status can offer many benefits when it comes to buying a home in Australia:

Better Housing to Choose From

As a permanent resident, you can buy new and existing homes. This perk increases your range and gives you more properties to choose from. So you can select housing prices, styles, and features suitable for your needs and goals. 

Mortgage and Loan Approvals

Banks may be more willing to approve your mortgage and loan requests with long-term stability. You may also receive better interest rates compared to a temporary visa holder. 

Government Assistance

Permanent residents may qualify for government assistance for first-time home buyers. This additional aid can lower your housing investment and make purchasing a first home more cost-effective. 

Decide Where You Want to Live

Some areas and suburbs may have restrictions on who can buy there. As a permanent resident, you can pick where you want to live. This flexibility helps you choose a home closer to work and school and more suitable for your lifestyle. 

Long-Term Visas Available to Migrants

Now that you know the benefits of PR status for buying a home, you may want to consider various pathways to permanent residency:

1. The skilled Independent visa (subclass 189).
2. Subclass 190 skill nominated visa.  
3. Skilled Nominated Permanent Visa Subclass 191.

Start Your Journey to Long-Term Residence in Australia

If you’re ready to start your path to long-term residency, we’d love to help. 

AustraliaMigrate specialises in permanent residency immigration. We help you every step of the way in your visa application, from selecting a suitable visa to paperwork, completing essential requirements and lodging submissions. Our team of experienced professionals are experts in their field and support you throughout the process. 

Many prosperous journeys in Australia start with us, and yours can too. Contact us online today to speak with one of our professionals.