Hi Guys, I am planning to sell my own home and move into my investment property which has been rented out for the past 7years. Since this investment property will then become my own home, will CGT still apply if I sell this property one day?
If you were to sell the property in the future any gains from the point it become your PPOR would not be considered as a capital gain.
I.E Purchase IP for 500k, it becomes your PPOR at 650k value and you then sell it at 750k value. Your profit for CGT would be (650k - 500k) = 150k.
Valuation only applies when property starts as main residence, then is rented.
Main residence exemption is pro-rata for the number of days that property is occupied as main residence.
See Rental property becomes your main residence
in
My thinking is that this will become your new PPOR.
If you were to sell the property in the future any gains from the point it become your PPOR would not be considered as a capital gain.
I.E
Purchase IP for 500k, it becomes your PPOR at 650k value and you then sell it at 750k value.
Your profit for CGT would be (650k - 500k) = 150k.
It may be worth it to get a valuation at the time it ceases to be your IP to assist in future CGT calculations?
If you were to sell the property in the future any gains from the point it become your PPOR would not be considered as a capital gain.
I.E Purchase IP for 500k, it becomes your PPOR at 650k value and you then sell it at 750k value. Your profit for CGT would be (650k - 500k) = 150k.
Valuation only applies when property starts as main residence, then is rented.
Main residence exemption is pro-rata for the number of days that property is occupied as main residence.
See Rental property becomes your main residence
in
Aren't the pro rata method and the valuation method (i.e value of property when you move into it/ceases being an IP) going to provide 2 different values for capital gain?
Valuation only applies when property starts as main residence, then is rented.
In this case, only pro-rata main residence exemption can apply.
Purchase IP for 500k, it becomes your PPOR at 650k value and you then sell it at 750k value.
Your profit for CGT would be (650k - 500k) = 150k.
No.
Valuation only applies when property starts as main residence, then is rented.
Hi @Alchelliah
You'll be liable for CGT when the property was your IP. Here's a link to go with the advice you've been given already from jfs. Take a look at rental property becomes your main residence on our website.
21 May 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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