When you buy a tenanted property in NSW, the existing lease usually continues and you become the landlord. Investors benefit from rent from day one, and lenders count the lease. If you want to live there, you need either vacant possession in the contract or to give the tenant notice under the 2025 rules, which can take 60 or 90 days.

NSW notice periods for a landlord moving in
Type of lease Notice for the landlord or family moving in
Fixed term of 6 months or less 60 days
Fixed term of more than 6 months 90 days
Periodic 90 days
Actual sale where the contract requires vacant possession 30 days, given by the seller

What happens to the lease when a property is sold?

The lease stays in place, and the buyer takes over as landlord, including the bond, rent and obligations. If the contract requires vacant possession, the seller must end the tenancy before settlement. Since 19 May 2025, a landlord needs a specific ground to end a tenancy, and an actual sale requiring vacant possession is one, with 30 days’ notice and supporting documents.

How do lenders treat a tenanted purchase?

For an investor using an investment loan, a tenanted property is straightforward: the lender counts the rent from the lease, usually after a standard reduction. For an owner-occupier, the lender wants to know when you will move in, and a long remaining lease can be a problem for an owner-occupied loan. Tell your broker about the lease before you apply.

What if you want to move in after buying?

You can end the tenancy on the ground that you or a family member will live in the property for at least six months, giving 60 days’ notice for a fixed term of six months or less and 90 days otherwise, with supporting documents. You cannot rent it out again for a period afterwards. Under a longer fixed term, you generally need to wait for the term to end, so check the lease dates before you buy.

Does it affect first home buyer relief?

Yes, timing matters. For contracts from 1 July 2023, NSW first home buyer duty relief requires you to move in within 12 months of settlement and live there for at least 12 continuous months. A tenant with a long lease can make the first deadline hard to meet. The NSW stamp duty guide for first home buyers explains the rules.

What should you check before buying?

  • The lease: rent, end date and any options.
  • The bond lodged and any arrears.
  • The condition report and any outstanding repairs.
  • Whether the contract gives vacant possession or is subject to the tenancy.
  • Rent against the market, using the rental yield calculator.

Is a tenanted property cheaper to buy?

Sometimes. A property sold subject to a tenancy appeals mainly to investors, which can narrow the buyer pool and soften the price. For an investor, rent from day one and no letting costs are worth something too.

Questions people ask

Can I buy a house with tenants in it?

Yes. The lease continues and you become the landlord, unless the contract requires vacant possession.

How much notice do I give a tenant to move in myself?

Generally 60 days for a fixed term of six months or less and 90 days otherwise, with supporting documents.

Can a first home buyer buy a tenanted property?

Yes, but NSW duty relief needs you to move in within 12 months of settlement, so check the lease.

Charles Touma checks how the lease affects your loan and any first home buyer relief before you exchange. A free 30-minute call covers it. General information only, not legal or credit advice; a conveyancer should review the lease and contract.

Sources: NSW Fair Trading, minimum notice periods; NSW Fair Trading, landlord ending a tenancy; Revenue NSW, First Home Buyers Assistance Scheme residence requirements, checked 18 October 2026.

General information only, not credit, legal or tax advice. Your situation is assessed properly before any recommendation. Government scheme details change; figures are current at the time of writing.