What are Australia's foreign investment in real estate rules?

Foreign investment in Australian property is a divisive topic.

The Foreign Investment Review Board (FIRB) is coming under close scrutiny, with many believing the board is neglecting to police the current rules around offshore purchasers. Others suggest that the existing rules are too weak and are pushing for new legislation. 

But what actually are the current rules for foreign buyers looking to purchase Australian residential property? Here are some of the most pertinent rules:

1. An application must be made for each specific property that a foreign buyer intends to purchase. An application must be lodged for that home – it cannot be lodged for a general or in principle approval. This approval then stands for 12 months from the date on the letter. Separate applications can simultaneously be made and granted for multiple properties.
   
   
2. The approval letter (which comes as an email) only applies to the individual or group who applied. It is not transferrable, and if another party wants to buy they must re-apply.
   
   
3. Temporary residents, and 457 visa holders, are only able to buy one established dwelling, which is to be used as a primary place of residence. There are no restrictions on the number of vacant and new properties (or established properties for redevelopment) that approval can be received for.
   
   
4. Temporary residents cannot purchase established dwellings until they actually live in the country.
   
   
5. Temporary residents must sell the established property when they leave as it is no longer their PPOR. They cannot rent it out. It must be sold within three months of leaving the country.
   
   
6. Foreign non-residents can only purchase vacant land or new property upon application. Established properties for redevelopment can be purchased under certain circumstances.
   
   
7. Approval is not required to sell unless the conditions have not been met. For instance, if vacant land was not developed by the purchaser, then approval will be required.
   
   
8. Those who no longer wish to purchase the property need to withdraw their approval by notifying the FIRB.
   
   
9. If you become a permanent resident then all conditions cease to apply.
   
   
10. If the developer has been granted pre-approval to sell new dwellings to foreign buyers, the foreign buyer does not need to submit an approval application.
    
    
11. Approval is required for foreign non-residents regardless of the method in which they buy – e.g. through a trust or company structure.
    
    
12. Foreign non-residents cannot buy secondhand (established) property, or buy a stake in the property, unless they do so with a spouse. Approval is still required.