When researching buying property in Australia, many Vietnamese – both those living in Australia and overseas buyers – often make basic misunderstandings right from the first step.
These misconceptions cause buyers to:
- Miscalculate actual costs
- Choose the wrong property type
- Or incorrectly dismiss completely legal options
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Misconceptions Vietnamese have when buying property in Australia
Below are the most common misconceptions, with specific information according to current law, especially in Melbourne, Victoria.
Misconception 1: Only PR or Australian Citizens Can Buy Property
This is a very common misunderstanding.
Reality according to Australian law:
Australian Citizens and PR:
- Can buy new residential, existing property, and residential land
- No FIRB approval needed
- Not subject to foreign purchaser additional duty
Foreigners / temporary visa holders:
- Can still buy property in Australia
- But can only buy new residential / off-the-plan
- Must apply for FIRB (Foreign Investment Review Board) approval
The issue isn't whether you can buy, but what type of property you can buy.
Misconception 2: Foreigners Buying Property in Australia Always Pay Extra Tax
Many people only hear "extra tax" but don't know the specific numbers, leading to misjudging the impact.
In Melbourne (Victoria), the specific numbers are:
| Tax/Fee Type | Details |
|---|---|
| Standard stamp duty | Calculated on progressive tax scale (same as Australians) |
| Foreign Purchaser Additional Duty (FPAD) | 8% of property value |
Note: FPAD only applies to residential, not commercial property.
Specific example:
Foreigner buying a Melbourne property worth $1,000,000 AUD:
- Standard stamp duty: approximately $55,000 AUD
- FPAD 8%: $80,000 AUD
Total stamp duty payable approximately $135,000 AUD
Misconception 3: Foreigners Have No Options Other Than Residential Property
Many people assume "buying property in Australia" means buying residential.
Reality:
Foreigners can buy commercial property in Australia.
In Victoria, foreigners buying commercial property:
- Not subject to 8% FPAD
- Only pay standard stamp duty (if applicable)
This is a point many Vietnamese and foreigners don't know, leading to only looking at residential and accepting higher tax costs than necessary.
Misconception 4 (Most Serious): Applying One Buying Method to All Cases
Each buyer group in Australia has completely different conditions:
- Families with children studying
- Overseas buyers
- People preparing to apply for PR
Applying a general formula easily leads to:
- Buying the wrong type of asset
- Paying unnecessary taxes
- Or facing legal restrictions later
Conclusion
Buying property in Australia isn't difficult, even for foreigners.
What's difficult is understanding correctly from the start:
- Who can buy
- What types can be bought
- And what are the actual costs and taxes
In Victoria alone, correctly distinguishing between residential and commercial can create differences of tens to hundreds of thousands of AUD in taxes.
Australian Property Buying Support & Property Growth Comparison Chart
In practice, each family has different visa status, different buying goals (living – investment – combined), and different financial capabilities.
If you are:
- Considering buying property in Australia
- Wanting to know what type of property suits your case
- Or wanting to see comparison charts of property type growth in Australia
You can contact us for direct support and receive detailed growth comparison charts, helping you make the right decision from the start.