Re: Legal reasoning.
If you use those to commit a crime, according to that reasoning apparently: yes. Without wanting to go into the right or wrong of the current court decision, I would expect many countries have similar provisions. A home might be difficult to see as a tool in a crime, but if someone is a persistent drunk driver, and kills somebody whilst driving under influence, few would argue that confiscating car (and licence) would be excessive punishment. If someone uses his credit card to defraud people, confiscating it could be part of the punishment.
What is needed in most countries is a court order.