• When your home becomes an investment

    When your home becomes an investment

    When your home just doesn't tick the boxes anymore, you know it’s time to move on. The next question is – do you sell or hang on to it as an investment?

    Keeping an investment property may offer important tax advantages. The main one is that you can generally claim the loan interest as a tax deduction. Likewise you can generally claim things like strata levies, council rates and depreciation. 

    The flipside is that you have to declare the rental income in your tax return. And since it’s no longer your family home, capital gains tax is now payable on any future price growth. 

    It’s not just about tax of course, tax isn’t the only consideration. Are you comfortable taking on a higher level of debt? Or should you be using the equity from your old home to take a smaller loan on the new home? 

    Another important question is whether your existing home is the best investment property available. You may find that you’re better off selling your old home and considering buying a new investment property. That way you may be able to take out a smaller non-deductible loan on your new home, while taking out a larger tax-deductible loan on the investment property. 

    To find out more about how RAMS can help with your home loan needs, get in touch with your local RAMS Home Loan Specialist. 

    You should also seek advice from a financial planner or tax specialist. 


    While the information provided here is intended as a guide only, your individual circumstances should naturally be taken into consideration. This is why we also recommend you obtain independent professional advice relevant to your financial circumstances.




    About the author

    • Raymond

      Raymond A Ram is the RAMbassador for RAMS Financial Group. Raymond works with the RAMS team to bring simple, helpful and expert information on home loans and savings accounts to life with his down to earth and cheeky personality. He enjoys seeing everyday Australians turn their dreams of saving for a goal or getting into a home a reality. 

      Growing up in Goulburn, NSW, Raymond was brought up with good old-fashioned Aussie values of hard work and a fair go. It soon became apparent that Raymond wasn't content for the conventional path of grazing, producing the very best wool, and finding a nice sheep to settle down with. So it wasn't long before his passion for performing and his talent as a likeable larrikin shone through - landing him a few roles such as 'RAMlet'. He was even tipped to play RAM-bo at one point but chose to become star of the small screen instead as RAMbassador for RAMS. He now finds this role so much more rewarding.

      Contact your local RAMS Home Loan Centre about your home loan options.

      Raymond A Ram

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  • Disclaimer:

    The information here is of a general nature only and is not intended to constitute financial or tax advice. You should consult your professional adviser, accountant or taxation expert for advice specific to your personal circumstances.

    The views and opinions expressed in this article are those of the author alone and do not necessarily represent the views or opinions of RAMS Financial Group Pty Ltd ABN 30 105 207 538 (RAMS),  Westpac Banking Corporation ABN 33 007 457 141 (Westpac) or their related bodies corporate. This article is strictly for information purposes only and neither RAMS, Westpac nor any of their related bodies corporate make any representation as to the accuracy or completeness of the information in this article or endorse the views expressed in it.