Can You Rent Out a Property You Bought Off the Plan in Australia

One of the most common questions buyers ask before purchasing an off the plan property is whether they can rent it out after settlement. The short answer is yes -- in most cases you can. But the specifics depend on the type of property, the state you are buying in, the strata bylaws, and what first home buyer concessions you may have accessed.

The General Rule: Off the Plan Properties Can Be Rented Out

Buying a property off the plan does not prevent you from renting it out. The property is yours at settlement and you can use it as an investment property in the same way you would with an established purchase.

For investors, this is one of the standard uses of off the plan purchasing -- buy at today's price, settle in 12 to 24 months, and rent the property immediately upon completion. The rental income can offset holding costs and the property benefits from full negative gearing under the 2026 budget settings for new builds.

Bronze on Chevron | Surfers Paradise QLD | $10K deposit | Secure with $10k and $1,092 x 131 weeks

The First Home Buyer Exception: Occupancy Requirements

If you used first home buyer concessions to purchase the property, there is an important condition attached.

Most state-based first home buyer grants and stamp duty concessions require the buyer to occupy the property as their principal place of residence for a minimum period -- typically six to twelve months from the date of settlement.

The specific requirement varies by state:

New South Wales. To receive the $10,000 First Home Owner Grant, the buyer must move in and live in the property as their principal place of residence within 12 months of settlement and remain for a continuous period of at least six months.

Queensland. The First Home Owner Grant requires the buyer to occupy the property as their principal place of residence within 12 months of settlement and live there for a continuous period of at least six months.

Western Australia. The requirement is to occupy the property within 12 months and for a continuous period of at least six months.

Renting out the property before completing the required occupancy period can result in the grant being repaid in full, with interest and penalties in some cases. The state revenue authority has the ability to audit and recover grants where the occupancy condition has not been met.

If you received a first home buyer grant and want to rent out the property, you must complete the minimum occupancy period before doing so. After that period is satisfied, you can convert the property to an investment.

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The Federal Home Guarantee Scheme and Renting

The federal First Home Guarantee, which allows eligible buyers to purchase with a 5% deposit and no LMI, also has an owner-occupier requirement. The property must be your principal place of residence at the time of purchase and for the initial period of the loan.

Converting a property purchased under the First Home Guarantee to an investment property is possible after the occupancy requirement is satisfied, but the specific rules around timing and what constitutes compliance should be confirmed with the participating lender before proceeding.

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Strata Bylaws and Short-Term Letting

For apartment purchases specifically, the strata bylaws of the building determine what rental arrangements are permitted.

Long-term residential tenancies are generally permitted in all strata buildings unless there is a specific bylaw restricting it, which is rare.

Short-term letting, platforms like Airbnb and Stayz, is more complex. Some buildings have bylaws that prohibit or restrict short-term letting. In NSW, legislation introduced in 2021 allows short-term letting in most circumstances unless the building's owners corporation passes a bylaw restricting it with a 75% majority. Other states have different frameworks.

Before purchasing an apartment with the intention of using it for short-term letting, read the strata bylaws carefully and check whether the owners corporation has passed any relevant restrictions.

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The Investment Case for Off the Plan Rental Properties

For investors buying off the plan with the intention of renting immediately upon completion, the current environment offers a specific combination of advantages.

Full negative gearing applies to new builds under the 2026 budget settings. New properties attract higher plant and equipment depreciation deductions than established properties. Builder defects warranties protect against the cost of fixing construction problems during the early years of ownership. And rental demand across most Australian capital cities remains strong, with vacancy rates near historic lows in many markets.

Through Coposit, eligible off the plan investment properties can be secured with $10,000 upfront and the remaining deposit paid through weekly interest-free instalments during construction -- preserving capital during the build period while the investment asset is being completed.

Browse current investment-suitable listings on the Coposit projects page, download the Coposit app, or contact the Coposit team to understand which projects and markets suit your investment goals.

This article is general information only. Grant conditions, occupancy requirements, and strata bylaws vary by state, lender, and individual building. Always seek independent legal and financial advice before making any property decisions.