If you’re living in Australia on a temporary visa and dreaming of building your own home, the 2025 changes to the Foreign Investment Review Board (FIRB) rules might actually work in your favour. While the government has tightened restrictions on buying existing homes, itās actively encouraging foreign residents to contribute to new housing supply.
š« What You Canāt Do
From 1 April 2025 to 31 March 2027, foreign personsāincluding temporary residentsāare banned from buying established residential dwellings. This includes:
- Homes that have been previously occupied or sold
- Properties intended for personal use or investment
ā What You Can Do
You can still apply for FIRB approval to:
- Buy vacant residential land and build a new home
- Purchase new or near-new dwellings that havenāt been previously occupied
- Redevelop an existing property into 20+ new dwellings (though this is more suited to developers)
These pathways are designed to increase housing supply, not compete with local buyers for existing homes.
š§ Real-Life Example: Meiās New Home in Perth
Mei is a Chinese national living in Perth on a temporary skilled visa. In mid-2025, she applied for FIRB approval to purchase a vacant block of land in Baldivis, a suburb south of Perth known for its family-friendly vibe and growing infrastructure.
- The land cost $320,000, and her FIRB application fee was $15,100. There was also the additional 7% foreign buyer surcharge $22,400.
- She committed to building a home within four years, as required by FIRB conditions.
- Her builder is incorporating solar panels and energy-efficient design, aligning with sustainability trends.
- Once completed, Mei can live in the home without any restrictions, and she wonāt be subject to the annual vacancy fee as long as she occupies it for at least 183 days per year.
š How to Apply for FIRB Approval
Applying for FIRB approval is a straightforward process if you follow the right steps:
- Review Eligibility and Conditions The Australian Taxation Office (ATO) provides detailed guidance on who can apply and what conditions may apply. š ATO FIRB Residential Property Guide
- Submit Your Application via the Foreign Investment Portal As of May 2025, all applications must be submitted online through the new portal. Itās designed to streamline approvals and improve transparency. š Foreign Investment Portal
- Understand the Latest FIRB Regulations For legal insights and updates on exemptions, redevelopment rules, and fee structures, check out this industry resource: š Allens FIRB Regulation Update
š Where to Look: Perthās Best Suburbs for Building
If you’re based in Perth, here are some top areas to consider for buying vacant land and building your home:
| Suburb | Why Itās Appealing |
|---|---|
| Baldivis | Affordable land, family-friendly, growing schools and retail |
| Byford | Rapidly developing, close to nature, new estates available |
| Alkimos | Coastal living, new infrastructure, ideal for first builds |
| Ellenbrook | Master-planned community, strong transport links |
| Southern River | Quiet, green, and close to major employment hubs |
These suburbs offer a mix of affordability, lifestyle, and future growth potentialāperfect for foreign residents looking to build and settle.
š” Tips for Success
- Apply early: FIRB approval is mandatory before signing contracts.
- Stick to the timeline: You must complete construction within four years.
- Avoid resale: You canāt sell the land until the home is built.
- Occupy or rent: To avoid vacancy fees, live in the home or make it genuinely available for rent.
š Final Thoughts
If you’re residing in Australia and want to build your own home, the FIRB rules in 2025 are designed to support you. By focusing on new construction, youāre not only securing a place to liveāyouāre helping solve Australiaās housing shortage.
If you are looking at buiding as a foreign resident and would like to get pre-approval you can book an appointment here.