There are certain legalities involved in terms of government regulations that one needs to adhere if one is to invest in a property in Australia.  The Australian government recognizes the need for foreign investment in Australia and works towards meeting the needs of these investors. Since an increase in the level of foreign investment into the economy will push the budget surplus and leads to steady economic growth, it’s seen as an encouraging strategy. According to latest statistics the large number of foreign investment is real estates. The Australian government has encouraged the growth of housing investments by foreigners by increasing the supply of new houses; new development projects etc so that it will not only facilitate the foreign investors but also the locals in the area.

There are several types of properties that foreign investors can invest in Australia; vacant land which is available to a foreign investor constructing within a period of 24 months after obtaining FIRB (Foreign Investment Review Board) approval. Second hand dwelling, this is where the foreign investor is prevented from purchasing an existing property that is currently being dwelt for investment reasons. New dwellings, this is where foreign investors can purchase newly built dwellings. However the approval needs to be received for each purchase of the property and there’s no limit on the number of property purchased. Commercial, any property that’s vacant and developed property will be categorized as commercial. Apart from property that it’s being used for dwelling purposes but it excludes rural land. Obtaining a FIRB approval for commercial property is much easier as long as it does not conflict with the country’s interest. However there are certain commercial investment properties that do not need any declaration irrespective of the status of citizen. These are as follows; a developed commercial property which has a value of less than $50 million or $953 million  for US investors and or $5 million for heritage properties where the purchaser is not an US Investor. If a person acquires a commercial property that is to be used for immediate purposes and is not of a residential property instead an industrial nature is permitted.

The FIRB approval is generally given to foreign investors meeting the following criteria; if a foreign company wishes to buy properties for senior level management. If a foreigner is currently living in Australia for more than 12 month time period and intends to buy a property for his/her own use. The FIRB approval is also granted to a foreign national who is currently living with a spouse who’s an Australian.

There have been changes to the FIRB rules as of the March 2009. New dwellings are now defined as renting the property for not more than 12 months which makes the foreign investors to purchase easily. Second hand dwellings, temporary residents are no longer requested to inform FIRB of any property purchase and foreign companies are allowed to purchase or sell them if the property is vacant for more than a six months time period. Vacant residential land, foreign investors who acquire a single block of residential land that is vacant must construct a dwelling within a timeframe of 24 months. Accommodation facilities for example hotels are now to be treated as commercial properties instead of accommodation facilities. Prior notification is requested if the value of property exceeds beyond $50 million.