Check each agreement before moving out

Write down the grants, duty relief and guarantees you used, the contract date and the date you moved in. Each scheme can have a different occupancy requirement. Completing one requirement is not a universal clearance to rent the property.

A practical change-of-use checklist
Before purchaseRead the termsKeep the conditions for each benefit.
While living thereKeep recordsRecord occupation dates and required evidence.
Before moving outConfirm the changeContact the lender and the relevant revenue office.

Use actual dates. Do not rely on an assumed waiting period copied from a different scheme.

A deposit guarantee can continue after settlement

Housing Australia says the 5% Deposit Scheme has ongoing owner-occupier obligations. If they are not met, the guarantee may end and the lender may require LMI or other costs. Ask the participating lender what a change of use means for your loan.

Source: 5% Deposit Scheme: ongoing obligations.

Rebuild the budget as a rental

Add achievable rent, vacancy, management, landlord insurance and maintenance. Confirm the loan arrangements and use the full repayments. Keep a separate cash budget for the home you will live in next.

A property can look comfortable as a rental while the combined household budget remains stretched. BrickOutlook's rental calculator analyses the property; it does not calculate your entire household's borrowing capacity.

Record the transition

Keep the change-of-use date, tenancy documents, expense records and loan transaction history. Ask your tax adviser which records or valuations are needed before they become difficult to obtain.

Use the purchase budget for upfront money and the rental cash-flow calculator for the ongoing rental phase.