Should investors renovate before the 1 July 2027 CGT valuation date?
Renovating may increase an investment property’s value before the new CGT reset date, but investors need to weigh potential valuation gains against lost rent, holding costs, delays and the risk of overcapitalising.
Knowing when to renovate can be as strategically important as knowing how and what to renovate. (Image source: Hryshchyshen Serhii/Shutterstock.com)
With the recent market downturn, property owners may not be able to rely on general market growth to increase their property’s value by 1 July 2027.
This has naturally led some investors to consider another option: renovating the property in the hope of achieving a higher valuation at that important CGT date.
For affected investors, a higher valuation as at 1 July 2027 may be more favourable for future capital gains tax (CGT) purposes.
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