Stop sleeping on upgrading your principal residence

TLDR: Upgrade your principal residence as often as possible to make use of the largest provided tax reliefs. Incredible method of compounding wealth in the long-term.

I had a conversation the other day with an individual at my gym which resonated with me. It also made me consider how many people are aware and actively doing this?

It comes down to having an “investor” mindset. Your principal residence is most likely one of the most valuable assets you own. The real question is are you getting the most out of your principal residence? The government has been looking for ways to abuse us with taxes but the biggest reliefs we are given is on our principal residence. Whenever you sell your principal residence, you pay ZERO capital gains tax.

This is one of the best investment enablers you can dream of? Purchase a house at a discount, do a refurb (make it your “dream home”) which increases the value of the property, live in your newly refurbed “dream home” for 3-5 years and sell on and rinse and repeat aiming for bigger and better. Each sale tax free, an improvement in size and your lifestyle. Do this every 4-5 years and you can compound rapidly.

“But moving every 4-5 years is too early, I want to stay in a house long-term” , this is a personal choice which you can weigh up and decide yourself, it all comes down to mindset.

Personally in my mid 20’s now, and will most definitely be taking full advantage. At the end of the day, every risk is either a lesson or growth?

There are of course other factors to consider and it all depends on the deal.

Interested in finding out what more is involved and how you can take advantage? Feel free to reach out using the "Contact" page or you can book a free consultation.

Best,

Umang