Article by Connor Tait

5 Min Read

Post-Tax Time: Is Now the Right Time to Review Your Investment Property Strategy?

With another financial year wrapped up, many property investors are reviewing their portfolios — and rightly so. Tax time offers a natural checkpoint to assess how your property is performing and whether it’s time to sell, upgrade, refinance, or diversify. At Tait Real Estate, we’ve seen savvy investors use this moment to reposition themselves for greater returns and long-term growth.

Here’s why now is a great time to request an updated appraisal and explore your options.

Understanding Your Capital Gains Potential

If you’re considering selling, now’s the time to calculate your Capital Gains Tax (CGT) position. The key formula:

Capital Gain = Sale Price – (Purchase Price + Associated Costs)
(associated costs may include legal fees, stamp duty, renovation costs, agent fees, etc.)

Example:
Let’s say you purchased an investment property in 2017 for $320,000.
You spent $20,000 on improvements and $15,000 in total costs.
You’ve just had it appraised at $520,000.

Capital Gain = $520,000 – ($320,000 + $35,000) = $165,000

If the property has been owned for more than 12 months, you're entitled to a 50% CGT discount, meaning you’d be taxed only on $82,500 (depending on your marginal rate).

This kind of insight helps investors make informed decisions about whether to cash in, hold, or reinvest. A professional appraisal is the first step.

 

Some Investors Sell to Upgrade or Improve Yield

Selling your current investment doesn’t mean exiting the market — many investors use this opportunity to upgrade into higher-yielding assets.

Whether it’s moving from an older home into a low-maintenance duplex or townhouse with depreciation benefits, or from a single home into dual occupancy builds, these moves can increase rental yield and long-term growth.

 

The Scoop on New Builds: Where the Value Lies

We’re seeing a rise in value-conscious investors exploring new builds and turnkey homes. While construction costs have stabilised somewhat, not all builds are created equal. Here’s what to look for:

  • Location: Established suburbs or growth corridors with low vacancy rates

  • Land size: Balance between tenant appeal and future resale

  • Construction quality and inclusions: Cheap builds often cost more long-term

  • Potential depreciation benefits: Maximise returns through tax-effective design

Tip: A new build might offer a lower rental yield initially, but the long-term tax benefits and lower maintenance costs can make it a smart strategic pivot.

 

Others Refinance to Expand Their Portfolio

Some investors aren’t selling — they’re refinancing to unlock equity and purchase additional properties. Post-tax time, once you’ve finalised your returns and updated your financials, is a smart time to meet with your broker or financial planner to assess borrowing power.

But before you reinvest, ensure you're buying the right property in the right area — and with rental compliance increasingly strict in Victoria, due diligence is critical.

 

Why Appointing an Independent Agency Matters

At Tait Real Estate, we don’t manage rentals, which means our advice is unbiased, transparent, and solely focused on your goals as a property owner. Whether you’re exploring the best way to exit, reinvest, or restructure your portfolio, we provide a clear, conflict-free perspective.

We also offer:

  • A deep understanding of Victorian Tenancy Law and minimum rental standards

  • Advice on the costs of maintaining older properties under current regulations

  • Guidance on marketing investment properties with tenancies in place

  • Support in planning an exit strategy or transition to vacant possession if needed

 

Let’s Review Your Position — No Obligation

If you're unsure where your investment sits in today’s market, start with a no-obligation appraisal and strategy session. We’ll provide:

  • An updated market value

  • An estimate of your potential capital gain

  • Recommendations for next steps — whether that’s to hold, sell, or reinvest

 

Ready to explore your options?
Contact Connor at Tait Real Estate today on 0493 674 245 or book an appraisal online.
We’re here to help you make smart, well-timed moves — without the sales pressure.