Deciding what to do with your home while you’re travelling Australia is one of the biggest decisions you’ll face when planning your big lap. It’s also one where there’s no single “right” answer — what works depends on your timeline, financial situation, and how much hassle you’re prepared to manage from the road.
The good news? Thousands of nomads have walked this path before you. The community consensus from experienced travellers is clear: think carefully before selling. You can always sell later, but you can’t un-sell your home if travel doesn’t work out as planned.
Your Three Main Options
You essentially have three choices, each with distinct advantages and drawbacks:
Long-term rental: Traditional 12-month lease through a real estate agent. Provides steady income but lower returns and ongoing management.
Short-term rental: Airbnb or furnished short-stays. Higher income potential but more active management and seasonal income fluctuations.
Selling: Complete financial freedom but no property to return to and you’ll miss any capital growth during your travels.
The sweet spot according to experienced nomads? Rent out your home and renting it out. As one traveller put it: “Recommend not selling your home and renting it out.”
Long-Term Rental
Long-term rental through a property manager is the most hands-off approach. You’ll typically get 6-7% rental yield annually, minus property management fees of around 8-10%.
The Advantages
- Passive income: Money flows in whether you’re parked by a remote billabong or touring the Great Ocean Road
- Minimal management: Your property manager handles tenant issues, inspections, and maintenance
- Stable tenants: 12-month leases mean less turnover and vacancy periods
- Tax benefits: Depreciation and maintenance costs offset your rental income
The Downsides
- Lower returns: You’ll earn significantly less than short-term rental options
- Limited access: Your home is essentially off-limits while tenanted
- Wear and tear: Tenants aren’t always as careful as you’d be with your property
- Management fees: 8-10% of rental income goes to your property manager
Choose your property manager carefully. Ask other landlords in your area for recommendations and check their vacancy rates and tenant screening processes.
Short-Term Rental
Short-term rental through platforms like Airbnb can generate 2-3 times the income of traditional rental, but it comes with significantly more work.
The Income Potential
In major cities, well-presented short-term rentals can earn $150-400 per night, depending on location and quality. Even in regional areas, $80-150 per night is achievable if you’re near tourist attractions.
However, occupancy rates vary dramatically by season and location. You might be booked solid during peak tourist season but have weeks of vacancy in shoulder periods.
The Reality Check
Managing short-term rental from the road is challenging. You’ll need:
- Reliable internet: To respond to bookings and guest messages promptly
- Local support: Someone to handle check-ins, cleaning, and maintenance issues
- Quality setup: Professional photos, quality furnishings, and tourist-grade amenities
- Constant availability: Guests expect quick responses to messages and issues
Many councils now restrict short-term rentals. Check your local regulations before committing to this path. Some areas limit the number of days per year or require special permits.
Selling Your Home
Selling provides the ultimate freedom — no tenants to worry about, no ongoing property costs, and maximum cash for your travels. But it’s also irreversible.
When Selling Makes Sense
- You’re planning to travel for 3+ years
- You’re downsizing anyway and don’t want to return to your current home
- Your mortgage payments exceed potential rental income
- You want to buy a different property in your desired retirement location
The Risks
- No fallback option: If travel doesn’t work out, you’ll need to re-enter the property market
- Missed capital growth: Property values might increase while you’re away
- Re-establishment costs: Buying again means stamp duty, conveyancing, and moving costs
- Market timing: You might be forced to sell at an unfavourable time
Key Factors to Consider
Your Travel Timeline
The length of your planned travels heavily influences the best choice:
- 6-12 months: Long-term rental is usually best. Short-term rental setup costs may not be worthwhile
- 1-2 years: Either rental option can work, depending on your income needs and management capacity
- 2+ years: Consider selling if you’re genuinely unsure about returning
Your Financial Position
Be realistic about your finances. Rental income needs to cover:
- Mortgage payments (if any)
- Council rates and water rates
- Building insurance
- Property management fees
- Maintenance and repairs
- Vacancy periods
If your potential rental income doesn’t cover these costs plus provide some buffer, selling might be more sensible.
Your Stress Tolerance
Managing property from the road isn’t for everyone. If you want complete peace of mind and minimal distractions during your travels, selling provides the cleanest break.
Test your tolerance by doing a shorter trip first. Rent out your home for 3-6 months and see how you handle the management responsibilities from a distance.
Managing the Logistics
Tax Implications
Rental income is taxable, but you can claim deductions for:
- Property management fees
- Maintenance and repairs
- Insurance premiums
- Depreciation on fixtures and fittings
- Interest on investment loans
Speak with an accountant before making your decision. They can model the tax implications of each option based on your specific circumstances.
Insurance Considerations
Standard home insurance may not cover rental properties. You’ll likely need:
- Landlord insurance for long-term rentals
- Short-term rental specific insurance for Airbnb
- Public liability coverage for either option
Factor these additional costs into your income calculations.
Remote Management Tools
Technology can help manage properties from the road:
- Property management apps: Track rent payments, maintenance requests, and inspections
- Smart home devices: Monitor and control security systems, thermostats, and smoke alarms
- Reliable internet: Essential for communication and managing bookings
The Bottom Line
The best choice depends on your personal circumstances, but the community wisdom is clear: err on the side of keeping your options open.
For most first-time big lappers, long-term rental offers the best balance of income and peace of mind. It provides financial breathing room during your travels while keeping the door open to return home if needed.
Short-term rental can work for tech-savvy travellers with good local support networks, but be realistic about the ongoing management burden.
Selling is the right choice for those genuinely ready to move on permanently, but remember: you can always sell later if rental doesn’t work out.
- Most experienced nomads recommend keeping your home and renting it out
- Long-term rental is lower income but much less stressful to manage from the road
- Short-term rental can double your income but requires constant attention
- Only sell if you’re genuinely committed to permanent relocation
- Factor in all costs including insurance, management fees, and vacancy periods
- Consider a trial run with shorter trips before making permanent decisions
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