AMA VICDOC_Spring 2026_09.09.2026 - Flipbook - Page 44
The Federal Government's changes to
negative gearing and capital gains tax have
Renovate or move
given those background considerations
new prominence. With the tax benefits of
holding a separate investment property now
curtailed, the principal place of residence –
still fully exempt from capital gains tax – has
become the most tax-advantaged property
asset most homeowners will hold.
That creates a case for what we call
'homevesting': applying an investment
lens to how you buy, improve and hold
your family home – not instead of treating
it as a home, but alongside it.
Assess what you have
Start with the basics. Does the home still
work for how you actually live today?
Is the block size right? Do you have enough
bedrooms, bathrooms and living zones, or
too many? Are you still paying a school-zone
premium for a school you no longer need?
Then apply the investment lens. The same
three fundamentals that drive capital growth
in investment property can be overlaid onto
the family home.
First, underlying land value:
is the property in an area where land is at
a premium and supply is limited?
Second, scarcity:
is the property type something that can't
easily be replicated?
Third, multifaceted demand:
when you eventually sell, will it appeal to
a broad range of buyers, or is it an unusual
asset with niche appeal?
A family home won't look identical to a
classic investment property. But land
value, scarcity and breadth of demand
drive growth in investment property, and the
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same principles apply to the family home.
If your home isn't working as both a
lifestyle asset and a growth asset, the
question is whether renovation can
close that gap or whether your equity is
better deployed in a different property.
