Investor Tips
Sell or Hold Your Adelaide Investment Property Before July 2027?
28 October 2026 · Vin Sran · 7 min read
If you own an investment property in Adelaide, you’ve probably heard that negative gearing and capital gains tax (CGT) are changing. Many landlords are now asking the same question: should I sell my investment property before July 2027, or hold on to it?
The short answer is that there is no single deadline you need to rush to beat. The right decision depends on your property, your finances and your plans. This guide explains the changes in plain English and the key factors to weigh up before you decide.
What is changing from 1 July 2027?
The changes were announced in the Federal Budget on 12 May 2026 and are now law. According to the Australian Taxation Office, two key changes start on 1 July 2027:
- Negative gearing: losses on residential investment properties will be limited to new builds. Properties already held at the time of the announcement (12 May 2026) are exempt, so existing landlords can keep negatively gearing the property they already own.
- Capital gains tax: the 50% CGT discount will be replaced with cost base indexation and a 30% minimum tax rate on capital gains. This applies to individuals, trusts and partnerships, but only to gains made from 1 July 2027.
What it means for existing Adelaide landlords
- Your negative gearing is protected if you owned the property before 12 May 2026.
- Growth up to 1 July 2027 keeps the current treatment, including the 50% CGT discount where it applies.
- Only growth after 1 July 2027 falls under the new CGT rules.
- Buying another established property after 12 May 2026 won’t come with the same negative gearing benefits, while new builds still will.
Because the gain is split by date, many tax advisers suggest documenting your property’s market value at 1 July 2027. For tax purposes, this is generally done by a qualified professional valuer, and your accountant can tell you which method suits your situation.
Do you need to sell before July 2027?
Not necessarily. Because growth up to 1 July 2027 keeps the existing CGT treatment, selling in a rush just to beat the date may not leave you better off, especially if you have to accept a lower price to sell quickly. Remember too that for property, the CGT event generally happens when the contract is signed, not at settlement.
Tax is only one part of the picture. Your rental income, holding costs, loan, future plans and what you would do with the money all matter just as much.
Not sure what your investment property is worth today? Book a free sale and rental appraisal with The Local Real Estate SA and compare your options with real local numbers. Book your free appraisal or call Vin Sran on 0435 200 199.
Sell or hold: what to consider
| Selling may suit you if… | Holding may suit you if… |
|---|---|
| Holding costs and repayments are putting pressure on your budget | The property is well tenanted and the rent covers most of your costs |
| You want to reduce debt or free up equity for other plans | You plan to keep the property for the long term |
| The property needs major repairs or upgrades to meet rental standards | The property is in good condition with low maintenance |
| You’re ready to step back from being a landlord | You value the protected negative gearing on a property you already own |
With interest rates now at 4.6%, the highest level since 2011, it’s worth reviewing your holding costs whichever way you’re leaning.
Selling a tenanted property in SA
If you decide to sell, you can sell with your tenant in place, which can appeal to other investors. Since 1 September 2025, South Australian landlords who have signed a sales agency agreement to sell also have a specific ground to end a tenancy, with strict notice requirements. A local agent who handles both property management and sales can guide you through the process.
Know your property’s value first
Whether you sell or hold, the best starting point is knowing what your property is worth in today’s market and what it could rent for. A free market appraisal gives you a clear picture to take to your accountant or financial adviser. Please note that a real estate appraisal is not a formal valuation for tax purposes.
How The Local Real Estate SA can help
The Local Real Estate SA is a boutique, locally owned agency based in Parafield Gardens. We help investors across Adelaide’s northern suburbs, including Parafield Gardens, Salisbury, Paralowie, Mawson Lakes, Elizabeth, Andrews Farm and Munno Para West.
- Thinking of selling? We’ll give you a free, honest sale appraisal based on real local sales.
- Planning to hold? Our property management is 5.5% including GST, with routine inspections every 13 weeks and no lock-in contracts on standard management.
- Not sure yet? We can give you both a sale and a rental appraisal so you can compare your options.
Book online: thelocalrealestatesa.com.au/book-appraisal
Call Vin Sran: 0435 200 199
The Local Real Estate SA | RLA 346402
Frequently asked questions
Will I lose negative gearing on my existing investment property?
No. Properties held at the time of the announcement on 12 May 2026 are exempt from the negative gearing change.
When do the CGT changes start?
From 1 July 2027. Gains made before that date keep the current treatment, including the 50% CGT discount where eligible.
Do I need a valuation before 1 July 2027?
Many tax advisers recommend documenting your property’s market value at 1 July 2027, generally through a qualified professional valuer. Speak to your accountant about the right approach for you.
Can I still negatively gear a new investment property?
Yes. Under the new rules, negative gearing remains available for new builds.
Is now a good time to sell my investment property in Adelaide?
It depends on your property and circumstances. A free appraisal will show you what your property could sell or rent for, so you can make an informed decision with your adviser.
Read more: How to sell your house fast in Adelaide and How to switch property managers in SA.
Disclaimer: The information in this article is general in nature only and is not professional legal, financial or tax advice. It does not take your personal circumstances into account. Please seek independent professional advice relevant to your situation before making any decision.
