Young Brisbane family strategically growing their wealth through interstate investment 💰

Client Snapshot

A couple in their early 30s, living in Brisbane with their young children, recently decided to take their first step into property investment. Both are employed full-time and in the 37% tax bracket. Their goal is clear: grow long-term wealth through smart real estate investing while keeping cash flow close to neutral.

They wanted to balance capital growth potential with tax efficiency and strong rental yield — all while making sure their first investment wouldn’t put pressure on their day-to-day finances.

Client Case Study: First Investment – Duplex in North Tamworth

Why North Tamworth?

North Tamworth, NSW, is a growing regional hub with reliable infrastructure, strong rental demand, and a 10-year average capital growth rate of 7.3%. The location made sense from both a cash flow and equity-building perspective. After market analysis and feasibility modelling, they chose a full turnkey duplex — a property that can generate two rental incomes, reduce vacancy risk, and enhance borrowing power for future investments.

Project Overview

• Location: North Tamworth, NSW

• Property Type: Duplex, Single Storey

• Total Floor Area: 180 m²

• Lot Size: 840.0 m²

• Contract Type: 2-Part Contract

• Turnkey Price: $846,000

  • Land: $240,000

  • Construction: $606,000

• Estimated Gross Yield: 5.41% (based on $45,760 annual rent)

• Estimated Weekly Rent: $880 initially (adjusted upward in final model)

Finance & Interest Assumptions

Financing Scenario	Value
Land Loan	$240,000
Construction Loan	$606,000
Total Debt (Including Costs)	$855,000
Interest Rate (IO)	6.00% (base case), 5.25% (rate cut model)
Loan Term	Interest-Only
Land Holding	3 months
Construction	9 months
Purchase Costs (Stamp Duty etc)	$9,000

Expense Assumptions

• 7% property management

• $2,500 council rates

• $1,000 maintenance allowance

• 1 week vacancy per year

• 1 week letting fee per year

• Expenses increase 2.5% annually

• Rent increases 5% annually

• Depreciation starts at $24,000 and reduces 10% each year over 10 years

Insight:With 80% borrowing, the property is cash flow positive after tax from Day 1, generating more than $100 per week in surplus.

Insight:Just a few rate cuts dramatically improve performance. The property becomes cash flow positive before tax in Year 5 and delivers over $7,200 after-tax surplus that year.

Final Thoughts

This case study shows how a well-chosen regional duplex can tick all the boxes for first-time investors:

✅ Strong capital growth

✅ Tax-effective holding via depreciation

✅ Positive cash flow potential — especially with 80% LVR or falling rates

✅ Reliable yield over 5% in a growing market

For this Brisbane couple, it’s not just about one property. This is the first step in a long-term strategy — and they’ve set themselves up smart.