Can I rent out my spare rooms as a first home buyer?
Renting out your spare rooms as a first home buyer is a great way to get ahead on your mortgage - but does it mean you lose your entitlement to the first home owners grant or first home buyers assistance scheme?
No - So long as you satisfy the occupancy test. This requires that at least 1 eligible purchaser must occupy the home as their principal place of residence for a continuous period of 6 months, commencing within 12 months of completion of settlement. If you satisfy that criteria, even if renting out the other rooms, you are still eligible for the grant.
If you are intending to turn your property into an investment after you have satisfied the occupancy criteria, it’s important that you don’t skip the steps such as updating your address on the electoral role, updating your address with the RTA and ensuring all utilities are in your name. All these things help to contribute proof that this was your Principle place of residence for the continuous 6 months during the first 12 months of home ownership.
There are also tax implications to consider given the extra income you will be receiving. We recommend talking to a qualified accountant to see how this affects you.
Take a look at out our blog on how renting your rooms out can help you pay off your mortgage faster and get on to flatmates.com.au to get started today!
This is based on NSW. The first home owners grant can vary from state to state. For a breakdown on how it helps you get ahead in the property market take a look at https://www.nsw.gov.au/improving-nsw/projects-and-initiatives/first-home-buyers/ for NSW buyers, or hunt out the relevant government authority in your state.