Buying Before Permanent Residency: Is It Worth the Extra Costs?
Key Takeaways
• Buying on a temporary visa is possible, but it comes with extra costs that permanent residency removes.
• The big ones are the FIRB application fee and the foreign-buyer stamp duty surcharge.
• Some visa holders qualify for surcharge exemptions, which can change the maths.
• Whether to buy now or wait depends on how close your PR is and your own readiness.
If you are on a temporary visa with permanent residency on the horizon, you may be weighing up whether to buy a home now or hold on until your status changes. It is a genuinely tricky decision, because buying before PR is allowed, but it carries extra costs that disappear once you become a permanent resident. Whether those costs are worth paying depends a lot on your circumstances.
This guide sets out the real extra costs of buying before PR, what waiting changes, and the questions that help you decide. It is general information, not financial, legal, or migration advice. The figures and exemptions vary by state and change over time, so it is worth confirming the details with a conveyancer, the relevant state revenue office, and a registered migration agent about your PR timing.
Everyone's timeline and budget are different, so the right answer rarely repeats. If you have questions visa buyers often ask, we are happy to talk it through, with no cost and no pressure.
The Extra Costs of Buying Before PR
Buying on a temporary visa is possible, but you incur costs and face limits that a permanent resident does not. The main ones are:
• The FIRB fee. As a foreign person, you generally need Foreign Investment Review Board (FIRB) approval, with a non-refundable application fee starting at around $15,100 and increasing with the property's value.
• The stamp duty surcharge. Most states add a foreign-buyer surcharge, often 7% to 9% of the price, on top of normal stamp duty, which can run to tens of thousands of dollars.
• New dwellings only. Foreign buyers are limited to new homes, off-the-plan or vacant land to build on, and cannot buy an established house until at least mid-2029.
• A larger deposit and fewer lenders. Temporary visa holders often need a bigger deposit and have a narrower choice of lenders.
• No first home buyer help. The 5% Deposit Scheme, the First Home Owner Grant, and stamp duty concessions all require citizenship or permanent residency.
Added together, these can amount to a significant sum, which is why the timing question matters.
What Permanent Residency Changes
Becoming a permanent resident removes most of those costs and limits in one go.
As a permanent resident, you are treated by lenders much like a citizen. You no longer need FIRB approval, the foreign-buyer surcharge generally falls away, and established homes come back onto your list. You also gain access to the full lender market, can often borrow with a smaller deposit, and become eligible for the 5% Deposit Scheme, the First Home Owner Grant, and stamp duty concessions. In other words, waiting for PR can save you both the FIRB fee and the surcharge and open up cheaper, simpler borrowing options. The catch, of course, is the wait itself.
The Exemptions Worth Knowing About
Before assuming you will pay the full surcharge, it is worth checking whether an exemption applies, because some do.
The surcharge rules are set by each state, and several offer exemptions that can change the picture. Holders of certain partner visas, and New Zealand citizens on a special category visa, are often treated as exempt. Some states also waive the surcharge for buyers who live in the home as their main residence for a set period, such as 200 days within the first year, though the conditions are strict and missing them means paying in full. Importantly, the rules differ from state to state, even across the Albury-Wodonga border, so what applies in New South Wales may not apply in Victoria. This is exactly the kind of detail to confirm with the relevant state revenue office and a conveyancer before you sign.
How to Weigh It Up
With the costs and exemptions clear, the decision usually comes down to a handful of questions:
• How close is your PR? If it is months away, waiting may save you a great deal. If it is years off or uncertain, buying now may make more sense.
• Do you qualify for an exemption? If a surcharge exemption applies to you, the cost of buying now drops considerably.
• Are you buying with an Australian partner? Buying as joint tenants with a citizen or permanent resident partner can remove the FIRB requirement and the surcharge.
• Are you ready in other ways? Your deposit, job stability, and plans matter just as much as your visa.
• Are you happy with a new build? While on a temporary visa, that is your only option.
There is no single right answer; it depends on how these line up for you.
A Real-World Example: Weighing the Wait
Here is how the thinking can play out, with round figures. Treat it as a guide only.
Sanjay is on a 482 visa, with a permanent residency application likely to be processed in about 18 months. He found a new apartment he liked for $650,000. Buying now, he would face an FIRB fee of around $15,100 and, unless an exemption applied, a foreign-buyer surcharge of tens of thousands of dollars, and he would be limited to new properties.
When he mapped it out, the savings from waiting were substantial: no FIRB fee, no surcharge, access to established homes, and eligibility for the 5% Deposit Scheme once he held PR. Because his PR was close and he was comfortable renting a while longer, Sanjay chose to wait. He noted that if his PR had been years away or uncertain, the balance might well have tipped the other way.
Where to Read More
Surcharge rules and exemptions are set by each state. Revenue NSW explains who pays the NSW surcharge and which visa holders are exempt.
Frequently Asked Questions (FAQs)
Can I buy a property in Australia on a temporary visa?
Yes, in most cases you can, provided you obtain Foreign Investment Review Board approval first and stick to the property types open to foreign buyers, mainly new dwellings, off-the-plan homes, and vacant land. You will also usually pay a foreign-buyer stamp duty surcharge unless an exemption applies, and you may need a larger deposit. It is very doable, but the extra costs are the thing to plan for. A broker can help you understand your borrowing options on a temporary visa.
How much extra does it cost to buy before PR?
The two main extra costs are the FIRB application fee, which starts at around $15,100 and rises with the property's value, and the foreign-buyer stamp duty surcharge, often 7% to 9% of the price in the states that charge it. On a typical home, the surcharge alone can be tens of thousands of dollars. There may also be a larger deposit to find and a narrower set of lenders. Exemptions can reduce or remove the surcharge, so it is worth checking your situation before assuming the full amount.
Will I get the stamp duty surcharge back when I get PR?
Not automatically, so it is best not to count on a refund. The surcharge is generally a cost at the time of purchase. That said, some visa holders are exempt from the outset, and if your residency status changes before settlement, a reassessment may be possible. The rules vary by state and are quite specific. The safest approach is to confirm with the relevant state revenue office and a conveyancer what applies to your visa and your state before you commit.
Should I wait until I have permanent residency to buy?
It depends mainly on how close your PR is. If it is only months away, waiting can save you the FIRB fee and the surcharge and open up established homes and first home buyer schemes, which is often worth it. If your PR is years away or uncertain, buying now may make more sense, so you are not left renting indefinitely. Your readiness, your budget, and whether an exemption applies all feed into it. A licensed adviser can help you weigh the trade-off for your situation.
Does buying with an Australian partner avoid these costs?
It often does. If you buy as joint tenants with an Australian citizen or permanent resident partner, in a genuine relationship, you can generally avoid the FIRB requirement, and the surcharge is usually waived as well. That can remove most of the extra cost of buying before PR. The income and ownership side has its own considerations, so it is worth getting both lending and legal advice. A broker can talk you through how lenders treat a couple in that situation.
Can I buy an established home on a temporary visa?
Generally no. Foreign persons are banned from buying established dwellings until at least mid-2029, with only very limited exceptions, so on a temporary visa, your options are new dwellings, off-the-plan properties, and vacant land to build on. Buying jointly with an Australian partner or waiting until you hold permanent residency are the main ways to access established homes. A conveyancer can confirm what you are permitted to buy in your circumstances.
The Bottom Line
Buying before permanent residency is allowed, but it comes with real extra costs: a non-refundable FIRB fee, a foreign-buyer stamp duty surcharge that can reach tens of thousands of dollars, a limit to new builds, and no access to first home buyer schemes. Permanent residency clears all of that away. So the heart of the decision is how soon your PR is likely to arrive, whether an exemption applies to you now, and whether you are ready to buy in other respects.
If your PR is close, waiting often saves a meaningful amount. If it is far off or uncertain, buying now may suit you better, especially if an exemption softens the cost or you are buying with an Australian partner. It is a personal call, and one worth talking through with a licensed adviser, a conveyancer, and a migration agent. On the lending side, we can help you compare your options either way, with no cost and no pressure.