EBS 31: Buy & Never Sell? | Why That’s Bad Advice

UPDATE: This episode doesn't cover the 2026 Federal Budget changes to capital gains tax and negative gearing. These are now law and start 1 July 2027. See "What's changed" below.

Episode 31 challenges the old advice to buy property and never sell. Jeremy and Damien explain why capital growth usually arrives in short bursts rather than consistently over decades, and why holding an underperforming property can create a significant opportunity cost.

The episode breaks down the real decision investors need to make by comparing the expected growth they could miss by staying put against the cost of selling and reallocating their equity into a stronger market.

Using historical examples across Sydney, the Sunshine Coast, Perth and Hobart, they show how the growth difference between markets can sometimes be large enough to outweigh capital gains tax, stamp duty, selling costs and the effort involved in buying again. They also explain why this strategy is not suitable for every investor, particularly where the tax liability is already very high.

The takeaway is simple. Never sell is not a rule. Investors should reassess their portfolio and consider selling when the expected opportunity cost comfortably exceeds the cost of moving their equity elsewhere.

Episode Highlights:

00:00 - Introduction

01:13 - The big discovery: Growth cycles

02:40 - Opportunity cost

03:35 - Exit cost

05:24 - Capital gains tax

09:04 - Re-entry costs