Your home is an investment goldmine

Many financial and investment “experts” will tell you that your home is a liability – a financial burden that costs you in monthly interest repayments and yields little
benefit as you sink thousands into maintaining it and paying ongoing costs like council rates.

However, there are many long-term homeowners who would disagree, and I’m going to explain why.

In fact, I’m going to advise you that buying your own home should be a significant part of your property investment strategy and how your family haven could send you soaring up the property ladder.

Your home as your savings plan

How many of us have heard stories from our grandparents and parents about the home they bought 25 years ago for $90,000, subsequently being sold for over a million dollars in today’s market?

It happens frequently and the best part is; all of that capital gain equates to a tax-free unlock combination bank money vault key code gold rich secret save budget

Unlike a property investment, where you have to pay land tax for each year of ownership and a large CGT bill when you realise the asset, the money made on your own home is yours to enjoy in entirety.

Not a bad little return on investment is it?

This type of scenario would mean that if a retired couple were to sell their home in a bid to downsize, they could purchase a tidy little townhouse in a nice area of their choosing for say $550,000.

While they would own the new property outright, they would also have an additional $500,000 plus left over.

This could then be invested in either shares or further property (my preference is always bricks and mortar for its stability), to provide a tidy little retirement income that will see them through their golden years in style.

Buy smarter

The above is a good example as to why it pays to be strategic about where and when you purchase your own home.

A well-positioned property in a desirable location will net you a much greater profit in the long term, as this will often be the first powerful asset you have in your investment arsenal.

I would go one step further though, and suggest that rather than necessarily having to sell your home to enjoy the financial gains to be had, you can still access all that equity and retain ownership.

If you wanted to downsize and enjoy a stress free retirement, your former principal place of residence could become a further investment to add to your property portfolio and you can borrow against it to buy that neat little townhouse closer to the grandkids.

The tenants who occupy your previous lodgings can pay the mortgage on your new home and you now have two investments working for you to provide a future income.

Ideally, you’ll retire with perhaps seven to ten properties in your portfolio that have all been paid down to the point where they are neutrally or even a little positively geared when you decide it’s time to stop working and enjoy the fruits of your labors.

Remember, this property retirement fund is on top of your superannuation entitlements.

Not a bad way to ensure you can live that life of luxury when you decide it’s time to quit the rate race is it?


Subscribe & don’t miss a single episode of Michael Yardney’s podcast

Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.

Need help listening to Michael Yardney’s podcast from your phone or tablet?

We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.


Prefer to subscribe via email?

Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.

Brett Warren


Brett Warren is Director of Metropole Properties Brisbane and uses his 13 plus years property investment experience to advise clients how to grow, protect and pass on their build their wealth through property. Visit: Metropole Brisbane

'Your home is an investment goldmine' have 5 comments


    May 15, 2016 Paul

    Buying my first home in SA in 1992 for around $82k was the best investment I ever made. By 2000 I owned the property outright. In 2013 I spent $20k on renovations (adding about $40-50k in value) and sold it for about $405k.

    That enabled me to buy a much better property for around $600k and only a $100k loan. If I had decided back in 1992 to instead rent a property and keep my $35k deposit in the bank earning interest (and paying tax on the interest), there’s no way my investment would be anywhere near $400k in value. And I’d still be forking out every week for rent. For me property has been the best investment. I should add that I have only ever been a low to middle income earner ($25k to $55k per annum)



    September 15, 2014 Ashley

    My theory is also that if you own youe own property it is worth a year, what you would otherwise be paying to rent the same place. For example, If I was to rent my place rather than owning it, it would cost me $23,500.00 per year. This equates to a yield of 4.5% and does not take into account capital growth. This is real money in my pocket that I can use to fund further investments. I would be interested to hear your thoughts.

    Ashley Smith



      September 15, 2014 SHANNON

      That’s a fair point Ashley – It definitely makes a fair portion of your equity bank. The other key criteria – is if it appeals to you as an owner occupier than it has the basis of an excellent capital growth vehicle. Some younger clients choose to rent and invest elsewhere but eventually – this investment is required as you don’t want to commit to a lifetime of renting.



        August 27, 2015 Lawrence Barnes

        Hi Shannon,
        I could not agree more with your article. If it was not for my purchase of my home back in 2002 i would not have been able to start my own business, renovate my own home (twice) and purchase additional properties.
        I just need to replicate what i did with my own home and i am set.


Would you like to share your thoughts?

Your email address will not be published.


Copyright © Michael Yardney’s Property Investment Update Important Information
Content Marketing by GridConcepts