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Is it worth living in the property first to get the stamp duty exemption?
Bayley Clarke · Mortgage broker on the road · Last checked 3 September 2026 · 4 min read
The short answer
It can make sense to live in it first, get your stamp duty exemption and then move out. But it depends how you've bought the property in the first place.
If you bought under the 5% scheme, the rule isn't 12 months. You need to keep living in it until your loan is 80% of what the property is worth, and the banks are calling out people who put tenants in early. Outside the scheme it's a numbers game: what does living in it do to your budget and repayments during the window, versus paying the stamp duty and keeping your options open.
The two minute version. The rest of this page is the detail underneath it.
The scheme changes the answer
If you're buying a property under the 5% scheme, the rules of the scheme are not just that you need to live in the property for 12 months. You need to continue living in the property until your loan becomes 80% of what the property is worth in the future. Only then will you actually be allowed to come out of the scheme and put tenants in it.
There are explicit rules that say you cannot rent the property out while you are under the scheme. You've got to be careful, because the banks are getting on top of it and they're calling out people that are doing exactly that. The consequences page spells out what happens if they do.
Outside the scheme, it's a numbers game
Whether it makes sense to live in it for the stamp duty exemption, versus not living in it and copping the stamp duty, comes down to what it materially changes. Your budget. Your ability to borrow money. What the repayments look like during that 12 month window you're required to live in it.
Say you're living at home with your parents. How much are you going to need to spend on the mortgage if you move out, on top of all the other things that come with living on your own or with your partner? Rent-free at home while tenants pay the loan can be the stronger position, even with stamp duty paid.
Sometimes paying stamp duty isn't the worst thing
Forgoing your first home buyer stamp duty benefits can be the right call if we're looking at buying in a growing market. If the property goes up 3% or 4%, the stamp duty has paid for itself. That's the same logic as buying an investment first.
When me and my mate bought a property, our goal was to live in it, take advantage of the stamp duty exemption, then move out and put tenants in right away. We ended up living in it for two and a half years because we absolutely loved living out of home. So there's a plan, but sometimes the plan just doesn't happen.
The honest bit: don't build a strategy on a rule you haven't read
The 12 month figure gets repeated a lot. Under the scheme it's the wrong number, and under a normal first home buyer stamp duty concession the residency requirement is set by your state and is its own thing. Two different rulebooks, and people mix them up.
Knowing your numbers and figuring out which one's right for you is the most important point. I'll run both versions side by side so you can see it.
Want both versions run for your numbers?
A 30 minute call. Live in it versus rent it out, stamp duty paid versus exempt, with the scheme rules applied to your actual purchase. You leave with the comparison.
No cost to you, ever. The bank pays me when a loan settles. · How I get paid
Next question
Can I rent out the home I bought with the 5% deposit scheme?The scheme rule in full, and what the bank does if it catches you.
Related answers
Do first home buyers still pay stamp duty? If I have a bigger deposit, does that change how much the bank will lend me? What happens if prices fall after I buy with a 5% deposit?Not your question? Book a call and ask it, or call 0437 189 939.