Looking for a high-return, tax-free asset that never goes out of style? Look no further than your own home. 

Home ownership is regarded as one of the foundations of wealth – and with good reason. In fact, our homes are the dominant source of personal wealth for Australians. Think of it this way. 

In March 2026, net household wealth (assets less debts) in Australia hit a record high of $19.21 trillionⁱ. Of this, property contributed a whopping $13 trillion. The second most valuable asset was superannuation savings, which at $4.4 trillion didn’t even come close to property as a driving factor of household wealth. 

One of the key reasons our homes contribute so much to personal wealth is that residential property rises in value over time – often at impressive rates. 

Research group Cotality crunched the numbers, finding that over the 30 years from 1995 to September 2025, home values skyrocketed by an average of 6.4% annuallyⁱⁱ. As those gains have compounded, the result is a 454% rise in property values. 

Looked at differently, in cities like Sydney, Adelaide and Hobart, home values have increased more than sevenfold since 1995 as shown in the table below. Perth and Brisbane values have jumped more than eightfold. 

These figures explain why we often look back at the price we initially paid for our home, and marvel at how little it seems in the light of current prices. Of course, we don’t always hang onto the same home for 30 or so years. 

That’s okay. While property tends to work best as a long-term investment, home ownership still pays rewarding returns over shorter periods. 

As a guide, Cotality found 96% of properties resold in the first quarter of 2026 made a profit for the seller – the highest proportion since 2005. 

The median gain on sale was a record $377,000^v.  

The same research shows the average holding period for profit-making properties was around nine years. 

What’s just as impressive is that our homes are one of the few remaining assets that are free from capital gains tax. 

The bottom line is that when it comes to impressive, tax-free long-term gains, it is very hard to go past home ownership as a low-risk building block of wealth. 

It makes the investment in your home as safe as houses.  

If you’re considering upsizing, rightsizing, or downsizing a home this winter, contact your local Raine & Horne office today.