Selling a Prize Home: What You Need to Know
Winning a multimillion-dollar prize home is a dream come true — but what happens next? Do you move in, rent it out, or sell it straight away?
If you're considering selling a prize home, this guide will help you navigate the legal, financial, and emotional aspects — including tax rules, property market strategy, and the unexpected consequences most people overlook.
What Happens Immediately After You Win?
Before you can make any decisions, there’s a legal process that must happen first:
The charity or lottery organisation must complete title transfer paperwork
It can take 4–12 weeks before you're legally the owner and can sell
During that time, you’ll have time to plan, visit, or even start short-term prep
👉 You can’t legally list the home for sale until it’s transferred into your name.
Should You Sell Right Away or Hold?
After the initial excitement fades, most winners face a practical question: Should I sell this home, or hold on to it? The answer depends on your lifestyle, finances, and long-term goals.
🔑 Reasons to Sell Immediately:
You can’t afford the running costs. Luxury homes come with high council rates, maintenance, and insurance.
You already own a home. Managing two properties can be complex.
You want to access the money now. Selling gives you flexibility to invest or pay off debt.
🏡 Reasons to Hold or Move In:
You love the location and lifestyle. It may truly feel like home.
It’s a rare asset. Some prize homes are architecturally unique and could appreciate further.
You want to rent it out. This can provide income while keeping the asset.
Pro Tip: Even if you plan to sell, consider living in the home for a short time to increase its “emotional value” for potential buyers — and give yourself time to prepare.
Capital Gains Tax: Will You Pay It?
This is the #1 question prize home winners ask: Do I have to pay capital gains tax when I sell the house?
🧾 The Short Answer:
Winning a prize home is tax-free in Australia.
But if you sell it, capital gains tax (CGT) may apply unless the home qualifies as your principal place of residence.
💡 How to Avoid CGT:
To qualify for a CGT exemption:
You must move in and establish it as your main residence
You generally need to live there for at least 3–6 months
It must not be rented or used as an investment during that time
If you sell it without living in it, or after renting it out, you will likely pay CGT on the profit above the home’s original valuation at the time of winning.
📉 Capital Gains Discount:
If you hold the home for more than 12 months before selling, you may be eligible for a 50% CGT discount on any taxable gains.
Unexpected Costs to Consider
Before selling, make sure you factor in these hidden costs:
Legal and conveyancing fees
Agent commissions (often 2–3% of the sale price)
Styling and photography for marketing
Ongoing utilities and cleaning during sale period
High-value insurance premiums for vacant or luxury homes
These can add up to tens of thousands of dollars — which should be included in your decision-making process.
When Is the Best Time to Sell a Prize Home?
Timing is everything in real estate.
Ideal scenarios to sell:
When the market is rising or near its peak
During local high-demand seasons (often spring and summer)
When recent comparable sales have been strong
If your prize home is in a resort area or holiday location, timing the market with tourist demand can also impact sale price.
Example: Homes on the Sunshine Coast have seen spikes in value due to remote work trends and lifestyle buyers.
Should You Rent It Out Instead?
For some winners, renting the property out (short-term or long-term) is a way to earn income while deciding.
Benefits:
Ongoing cashflow
Property may appreciate further
Retain the asset without commitment
Drawbacks:
You'll likely pay CGT later if you decide to sell
Property management and maintenance become your responsibility
Emotional attachment may fade if tenants damage the home
What Most People Don’t Think About
Here are a few important factors that catch many winners off guard:
1. Impact on Centrelink or government payments
A property windfall can affect your eligibility for benefits. Always seek advice before making major financial changes.
2. Insurance implications
Insuring a high-value home (especially if unoccupied or rented) may require special coverage.
3. Psychological stress of sudden wealth
Lifestyle changes, family pressure, or decision fatigue are common. Consider speaking with a financial adviser or therapist.
Final Thoughts: Make a Clear, Informed Plan
Whether you plan on selling a prize home or turning it into your personal paradise, what matters most is that you act with clarity and confidence.
✅ Understand your tax obligations
✅ Know your timelines and goals
✅ Get professional advice early
Still deciding? Explore other prize homes, compare values, and get inspired: 👉 Compare current prize homes here
Explore Australia's Top Prize Home Lotteries
If you're thinking of selling a prize home or just curious about the next big opportunity, check out the current draws from Australia's most trusted lotteries:
These are the draws we track, compare, and help you explore — all in one place.
Frequently Asked Questions About Selling a Prize Home
Q: Do I have to pay tax when I win a prize home?
A: No — lottery winnings in Australia are tax-free. However, if you sell the home, capital gains tax may apply depending on how you use the property.
Q: Can I sell my prize home right away?
A: Not immediately. You must wait until the property is legally transferred into your name, which typically takes 4–12 weeks.
Q: How do I avoid capital gains tax?
A: You may avoid CGT if the home is established as your principal place of residence. That usually means living there for at least 3–6 months.
Q: Can I rent the prize home out instead?
A: Yes — but rental income is taxable, and renting may affect your ability to claim CGT exemptions if you sell later.
Q: What happens if I already own a home?
A: You can keep both, sell one, or rent one out. Selling your existing home may free you up to move into the prize home — often tax-free.
