How Tom and Judy Used Rentvesting and a Dual-Key Property to Build Wealth Without Sacrificing Lifestyle

Tom and Judy are both in their early 30s, professionals living in Brisbane with solid incomes and no kids—yet. They’d bought their first home a few years ago and built up some equity.

They were keen to invest but were hesitant. Like many others in their position, they feared that investing in property would put too much strain on their lifestyle and personal cash flow.

They explored their options. Apartments in Brisbane's inner suburbs looked appealing from a lifestyle point of view, but the numbers didn't quite stack up. Net returns were low, and after factoring in body corporate fees and mediocre rental yields, the couple felt it would leave them out of pocket each month. They looked at townhouses too, but the story was similar—better yields, but still not great once you considered all costs and outgoings.

Then they looked at standalone houses. While growth prospects were decent, especially in outer suburbs, the cash flow just didn’t work. As high-income earners in the 37% tax bracket, Tom and Judy were hoping to at least offset some of the financial pressure with negative gearing benefits, but they still couldn’t shake the feeling that they’d be sacrificing too much of their current lifestyle for a long-term payoff that wasn’t guaranteed.

That’s where we came in.

Rethinking the Strategy: Enter Rentvesting and Dual-Key Design

We introduced Tom and Judy to a smarter way to invest—rentvesting through a dual-key property in regional Queensland. This approach allowed them to keep living in the lifestyle suburb they loved, while their investment worked for them somewhere more affordable with stronger rental returns.

Our recommendation: a dual-key, fully detached property in Boonah, QLD—an up-and-coming regional hub with growing rental demand, limited housing supply, and strong prospects for capital growth.

And here’s the kicker: Boonah has averaged over 10% capital growth annually for the past decade, outpacing many metro suburbs. It’s a standout performer with plenty of upside still to come.

What’s a dual-key property? It’s a single dwelling split into two self-contained living areas—think of it like two rental properties under one roof. One side is a 3-bedroom home, the other a 2-bedroom unit, each with their own entrance, kitchen, bathroom, and privacy. This setup dramatically improves rental yields and spreads risk. If one tenant moves out, you still have income from the other.

The Boonah Dual-Key Property: Key Numbers

We showed Tom and Judy the feasibility of the Boonah deal:

• Total Purchase Price: $864,748 (turnkey, fixed price)

  • Land: $332,900

  • Build: $531,848

• Land Size: 748m²

• Total Floor Area: 226.6m²

• Expected Rent: $1,100 per week across both units

• Gross Yield: 6.61%

They’d finance it 100% with interest-only debt at 6%, including land and construction. We factored in all holding costs—rates, property management (7%), maintenance, vacancies, and letting fees. On top of that, we included depreciation (starting at $20,000/year and tapering off over a decade), assuming tax refunds based on their 37% marginal rate.

The result? Positive cash flow after tax from Year 1, even on full debt. That meant no hit to their lifestyle—no sacrifices.

Ten-Year Feasibility: Cash Flow and Capital Growth

Here’s how the investment played out over ten years, using realistic assumptions:

• Rent grows 5% annually

• Expenses grow 2.5% annually

• Interest remains at 6%

• Property value grows 7.3% per year (conservative, compared to Boonah’s strong 10%+ 10 year average)

• Depreciation declines 10% each year

  
  

Even in Year 1, after all expenses and interest, the property had a minor cash flow shortfall of around $6,300—but depreciation created a paper loss of $20,000, generating a tax refund over $7,000. That turned the property cash flow positive after tax.

By Year 3, the gross cash flow was near break-even, and by Year 4, it was solidly positive—even before tax. With compounding rent increases and stable expenses, it only improved from there.

Wealth Creation Through Equity Growth

In addition to cash flow, Tom and Judy’s equity position grew steadily. At 7.3% annual growth, the property was worth:

• $927,874 in Year 1

• Over $1.2 million by Year 5

• Around $1.6 million by Year 10

Had they matched Boonah’s 10%+ historical performance? They would’ve done even better. Either way, they were on track for major wealth growth.

Alternative Scenario: 80% LVR or Interest Rate Drop

We also explored two “what ifs”:

1. 80% LVR PurchaseIf Tom and Judy had used an 80% loan (contributing 20% deposit plus costs), their repayments would be lower, but they'd tie up more of their own cash—roughly $180,000. The property would still be cash flow positive after tax from Year 1, but they'd be using more equity upfront instead of keeping it liquid.

2. Interest Rate Falls to 5% After ConstructionWith just a 1% rate cut, annual interest would drop significantly, and the property would become strongly positively geared. That extra buffer could either boost savings or offset personal living costs—essentially making the property help pay for itself faster.

Here’s a comparison of Scenario 1 (80% LVR) and Scenario 2 (interest rate drop to 5%) over the first 5 years:

• 80% LVR provides stronger cash flow due to lower debt, but ties up more of your capital upfront.

• 5% Interest Rate improves cash flow substantially, even with 100% debt.

By Year 1:

• 80% LVR has ~$10.5K after-tax cash flow.

• 5% Interest Rate has ~$8.9K after-tax cash flow (still strong despite full borrowing).

Why It Worked for Tom and Judy

Tom and Judy didn’t want to change how they lived today just to hope for returns later. This deal gave them:

• Immediate after-tax cash flow

• Strong capital growth potential

• Rental income from two tenants

• Low risk of full vacancy

• A foot in the door to grow a portfolio

They leveraged their Brisbane home’s equity to cover deposits and costs, keeping their own cash untouched. They didn’t need to downgrade their home or lifestyle. The investment stood on its own.

Final Thoughts

Smart investing isn’t about chasing the hottest postcode or overextending for capital gains. It’s about strategy, timing, and alignment with your life.

For Tom and Judy, a dual-key rentvesting model in Boonah ticked every box: strong yield, manageable debt, and positive cash flow—without sacrificing lifestyle or long-term goals.

They’re now planning their second investment, using the equity growth from this first one to keep building.

That’s how wealth is made: one smart, low-stress decision at a time.