What Are the Ongoing Costs of Owning a Prize Home?
By Win A Home Editorial · 10 June 2026
What does it cost to own a prize home in Australia? Council rates, insurance, body corp, water and maintenance — realistic $30K–$60K/year on a $3M property.
Editorial note: General information only — not tax, legal, or financial advice. Rules change by draw and state; confirm on the operator’s official terms before purchasing or accepting a prize. Last updated June 2026.
Quick answer: Expect roughly $30,000–$60,000 per year in holding costs on a typical $2.5M–$3.5M coastal prize home — council rates, insurance, water, body corporate (if applicable), and maintenance — before you choose the property over cash.
Annual cost breakdown (indicative)
| Cost | Typical range (premium coastal QLD/NSW) |
|---|---|
| Council rates | $4,000 – $12,000+ |
| Building & contents insurance | $3,000 – $8,000+ |
| Body corporate / strata (if applicable) | $5,000 – $15,000+ |
| Water, power, internet (if occupied) | $3,000 – $6,000 |
| Pool, garden, pest, appliances | $3,000 – $10,000 |
| Property management (if rented) | 7–9% of rent + letting fees |
Figures vary sharply by land size, waterfront frontage, lift buildings, and council area. A $5M+ Noosa or Gold Coast trophy home can exceed this band.
Costs winners forget
- Land tax (investment / non-primary use, state-dependent)
- Furnishing gap if packages exclude personal items
- Security & monitoring while vacant pre-occupancy
- Capital works — roofs, lifts, coastal corrosion
Why this drives cash elections
Operators publish cash/gold alternatives precisely because holding costs exceed many winners’ budgets. Model five-year TCO before declining cash — see cash vs property choice.
Can rent cover costs?
Sometimes partially — see renting a prize home for yield themes and CGT trade-offs.
Related: Stamp duty on prize homes · CGT if you sell · Ongoing ownership costs
Frequently asked questions
Do operators pay council rates after you win?
Usually only until settlement/handover. Ongoing rates are the owner’s responsibility unless terms specify a prepaid period (rare beyond marketing copy).
Are rates included in the advertised prize value?
Marketing packages sometimes mention ‘rates paid for X years’ — verify the exact year count in the schedule of prizes.
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Frequently asked questions
- Do operators pay council rates after you win?
- Usually only until settlement/handover. Ongoing rates are the owner’s responsibility unless terms specify a prepaid period (rare beyond marketing copy).
- Are rates included in the advertised prize value?
- Marketing packages sometimes mention ‘rates paid for X years’ — verify the exact year count in the schedule of prizes.