Selling property in Australia: Complete guide for UK residents

Selling a property in Australia? You might be moving back to the UK or selling an underused holiday home, or perhaps it’s the right time to sell an investment property.

Whatever your plans, we’ve put together a handy guide covering everything you need to know about selling property in Australia. We’ll cover the steps for selling a property there as a Brit, along with info on estate agent fees, taxes and average timescales.

And if you need a low-cost, transparent way to transfer the proceeds of your property sale back to the UK, check out the Wise account from the money services provider Wise. It’s an international alternative to a bank account that lets you manage your money in 40+ currencies including British pounds and Australian dollars.

You can send, receive and convert money at great mid-market exchange rates and low, transparent fees*. Your money is always safeguarded and you’ll also get dedicated support when sending large amount transfers.

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Table of contents

How to sell property in Australia as a foreigner - a step-by-step guide 1. Get your documentation together 2. Find an estate agent 3. Choose a sales method 4. Advertise the property 5. Appoint a solicitor 6. Negotiate and accept an offer 7. Sign the contract of sale 8. Settlement Is now a good time to sell your property in Australia? How long does it take to sell property in Australia? Do you need a lawyer or a solicitor to sell property? Do you need an Australian bank account to sell property in Australia? Taxes and costs when selling property in Australia as a non-resident Real estate agent commission Marketing costs Auction costs Capital gains tax Legal fees Does owning property in Australia make you a tax resident? Save money with Wise international transfers

How to sell property in Australia as a foreigner - a step-by-step guide

If it’s your first time selling a property in Australia, you’ll need to get to grips with how the process works.

You’ll have some understanding of it from your experience of buying property in Australia, but it can be a little different from a seller’s perspective.

Let’s run through the main steps, so you know exactly what to expect.

1. Get your documentation together

Before you put your property on the market, it’s a good idea to get all of your paperwork together. This can help prevent delays later on.

Here’s what documents you’re likely to need:¹

• Your ID, such as a valid passport
• Title deeds for the property
• A zoning certificate (required in some states and circumstances)
• Title deeds
• Drainage diagrams
• Swimming pool certificate (if applicable)
• Property exclusions (details of what is not included in the property sale)
• All details and documents relating to the mortgage.

2. Find an estate agent

The next step is to find an estate agent to market and sell the property. It isn’t mandatory to use one, but it is advisable - especially if you’re selling an Australian holiday home while still living in the UK, or if you’re unfamiliar with the local property market.

The first important thing an agent will do is carry out a property appraisal, to give you an idea of the current market price. This will help you set the purchase price.

An agent will also take photographs of the property, list it on property websites, write marketing copy, handle viewings, take care of paperwork and communicate with potential buyers.

In all parts of Australia, all estate agents must be licensed - so make sure you check this when choosing one. Ideally, you’ll be able to get a personal recommendation from someone you know who has successfully sold an Australian property.

When you’ve chosen, you’ll sign an agency agreement with the agent. This typically lasts around 90 days.²

3. Choose a sales method

In Australia, there are a few different ways you can sell property:³

• Private Treaty - this is the most similar to how it normally works in the UK, where the property is listed with an asking price and buyers submit offers.
• Expression of Interest - this is where a deadline is set for all interested buyers to submit their best offers. At the end of the closing date, the highest bid wins.
• Auction - this is similar to property auctions in the UK, where buyers compete in real time to submit the highest bid for a property.
• Off-market - this is where interested parties are invited to view the property and make an offer before it is officially on the market.

Your real estate agent may advise you on the best sales method for the local area and property market.

4. Advertise the property

Now it’s time to put your property on the market and advertise it to potential buyers. Before photographs are taken, it’s worth taking the time to clean, declutter and dress each room - to make sure the property looks its best.

Your estate agent will play a central role in advertising the property, which may include listing in on popular Aussie property sites such as:

• Property.com.au
• Realestate.com.au
• Propertybuyer.com.au
• Allhomes.com.au
• Domain.com.au.
• Rightmove.co.uk (if you want to reach buyers from the UK).

5. Appoint a solicitor

It’s recommended to hire a solicitor or conveyancer to give you advice on your Australian property sale, and to oversee the legal and administrative aspects of the sale.

A personal recommendation is a good way to find a solicitor, but you can also search the members directory of the Australian Institute of Conveyancers (AIC).

6. Negotiate and accept an offer

Buyers can submit offers directly to you, but it could be easier if they go through your real estate agent. They can help you negotiate with buyers and agree on a final purchase price.

Of course, if you’re selling via auction or Expression of Interest, it’ll work differently.

7. Sign the contract of sale

Once the buyer’s solicitor has completed all the necessary due diligence checks, it’s time to sign and exchange contracts of sale. It’s legally binding, and is usually accompanied by the buyer paying a security deposit of around 10% of the sale price. A completion date will also be set.

8. Settlement

Settlement is all the final steps needed to complete the transaction, which includes:

• Organising payment transfers, including the final balance from the buyer and any fees or taxes owing
• Settling mortgages
• Handing over the keys
• Transfer of the property title from your name to the buyer’s name.

You don’t need to be physically present for these steps to take place, as it’ll all be handled by solicitors representing both parties.

💡 Read more: Receiving money from abroad in the UK: a how-to guide

Is now a good time to sell your property in Australia?

Your circumstances will have a lot to do with whether or not it’s the right time to sell your property in Australia. For example, how much you originally paid for the property along with how much prices have risen (or fallen) in the region.

But more generally across the country, it could be a good time to sell.

The property market in Australia appears to be robust, and house prices so far in 2024 have increased a huge 8.3% compared to the previous year.⁴

There are also issues with undersupply of good properties, so demand from buyers is strong.⁴

So if you initially bought your property at the right price, now could be an advantageous time to sell up.

How long does it take to sell property in Australia?

On average, properties in Australia tend to sell between 3 to 6 months.⁵

However, the time it takes to sell a property can vary based on a few factors, some of which will be out of your control. For example, the buyer may take longer than expected carrying out due diligence checks, or there may be an extra legal or other complication which takes time to resolve.

It may also depend on the asking price and how fast properties are selling in the local market.

Do you need a lawyer or a solicitor to sell property?

It’s strongly recommended to appoint a solicitor specialising in real estate or conveyancing work in Australia. They can draw up documents, check over conditions of contracts, give you advice about the selling process and so much more.

This could make your property sale go more smoothly and crucially, help you avoid a costly mistake.

Do you need an Australian bank account to sell property in Australia?

It’s not absolutely essential to have an Australian bank account in order to sell property in the country.

You may be able to use an international account or even your current account with a UK bank.

Another thing to note is that international transfers could get expensive, especially if the provider adds a margin to the exchange rate to convert your Australian dollars to British pounds. Consider checking out Wise to handle your international large transfers with mid-market exchange rates and low, transparent fees*.

Taxes and costs when selling property in Australia as a non-resident

So, how much will it cost you to sell property in Australia in fees and taxes? The first thing to know is that costs will vary from state to state, so you’ll need to do some research into fees and taxes in the area your property is located in.

Here’s a quick look at average fees and taxes, to give you an idea of the costs involved:⁶

Tax/fee name	Rate/fee
Real estate agent commission	1.81% to 2.57% of sale price
Marketing costs	$400 to $10,000 AUD
Auction costs	$200 to $1,000 AUD
Capital gains tax	0% to 45% (on profit from the sale)⁷
Legal fees	$400 to $2,500 AUD

Real estate agent commission

Estate agent fees in Australia vary by state, and can be either fixed or tiered. On average, you can expect to pay commission of between 1.81% to 2.57% of the sale price.⁶

Marketing costs

Unlike how it usually works in the UK, marketing costs aren’t always included in the estate agent’s commission fees in Australia. Instead, you may have to pay extra for a ‘marketing package’. This could cost anywhere between $400 and $10,000 AUD.⁶

Auction costs

If you choose to sell your property at auction, you may have to pay auctioneer fees of between $200 and $1,000 AUD.⁶ Bear in mind that there may be other commissions and fees involved too.

Capital gains tax

When you sell a property in Australia, you’ll need to pay capital gains tax on any profit you make from it. So, the difference between what you paid for the property and what you sell it for, minus any fees and expenses.

This can be complicated, as the rate, exemptions and other conditions are different for Australian citizens and foreigners selling property in Australia. Here are the main points you need to know:⁷

• Australian residents pay capital gains tax (CGT) on property sale profits according to their usual tax rates. This ranges from 0% on profits up to $18,200 AUD (the tax-free threshold) all the way up to 45% for profits exceeding $190,000 AUD.
• There’s a 50% CGT discount if you’ve had the property for more than a year, but this is only for Australian citizens.
• Foreign residents aren’t eligible for the 50% discount (unless the property was bought before May 2012), and pay CGT on property sales profits at rates starting from 30%.
• A property is exempt from CGT if is your main home
• All investment properties are subject to CGT when sold.

Complicating things further is the fact that the UK also has rules on capital gains tax when you sell property abroad.

If you’re a UK resident and sell an Australian holiday home, for example, you’ll need to pay the tax in the UK. However, you can potentially claim relief if you’re taxed twice, in both countries.⁸

Tax can be complex, so it’s best to get advice from a tax specialist before proceeding.

Legal fees

If you appoint a solicitor in Australia, you can expect their fee to be anywhere between $400 and $2,500 AUD.⁶

Does owning property in Australia make you a tax resident?

For anyone considering moving to Australia (or staying there if you’re a temporary resident), it’s useful to know about tax residency and how it relates to property ownership.

Owning a property doesn’t automatically make you a tax resident in Australia. But how much time you spend living in the property does.

Australia has something called the 183-day test to determine tax residency status. You’re considered a tax resident for the year if you spend 183 days or more in Australia within that year.⁹

You’ll also be considered a tax resident if you pass the ‘domicile test’, which is when the property you own in Australia is your main residence.⁹

Save money with Wise international transfers

Once the deal is done, you might need to work out the best way to transfer the proceeds from your Australian property sale back home to the UK if you don’t live in Australia.

Here’s where Wise can help you save money and avoid those pesky hidden fees and exchange rate markups. Open a Wise account online and you can send money between Australia and the UK for low, transparent fees* and great mid-market exchange rates.

Here’s an overview of the main benefits for using Wise:
Fast and easy setup with no physical paperwork Dedicated support for large transfers Sophisticated security and anti-fraud measures Low, upfront, transparent fees* and the mid-market exchange rates Fully trackable transfers Fast transfer times Two-factor authentication and real-time notifications

Sign up with Wise today 💰

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Sources used:

1. Perfect Agent - Documents You Need To Sell Your Property
2. LJ Hooker - Step by Step Guide to Selling Your Property
3. Belle Property - The 4 main ways to sell property.
4. Property Update - This week’s Australian Property Market Update – Latest Data, State by State November 12th 2024
5. OpenAgent - How long does it take to sell a house?
6. OpenAgent - What is the cost of selling a house in 2024?
7. ODIN Mortgage - A Complete Guide to Capital Gains Tax in Australia for Aussie Expats Living Overseas
8. GOV.UK - Tax when you sell property
9. Australian Taxation Office - Your tax residency

Sources last checked on date: 15-Nov-2024