start2invest | Northern QLD
As part of a strategy to accelerate their own SMSF portfolio, the start2invest founders invested in a property focused on capital growth and rental income in a high-demand regional location. Situated 10 minutes from local beaches, major employment hubs, quality schools, and essential amenities, the property was selected for its long-term financial potential and strong market fundamentals.
Property Snapshot
This property is a freestanding house with 5 bedrooms and 2 bathroom on a large, 720m2 block.
Location Snapshot
Regional city location with a strong and diverse economy that offers affordability and lifestyle.
Strategy Overview
The following strategies applied to the purchase: High Cash Flow, Buy & Hold, SMSF, Low Risk.
Investment Numbers
Purchase price in 2024: $650,000
Estimated value in 2025: $730,000
Weekly rent: $690
Cash flow: $-5,000/year
Building Wealth Through SMSF: How We Took Control of Our Retirement Savings with Property Investment
Most Australians leave their superannuation in the hands of fund managers, following a set investment strategy with little direct control. While this approach works for many, we saw an opportunity to take charge of our financial future by investing directly in property through our Self-Managed Superannuation Fund (SMSF).
As the founders of start2invest, we don’t just guide our clients through property investment - we apply the same strategies ourselves. We wanted to leverage our SMSF to build long-term wealth, gain direct ownership of a high-performing asset, and benefit from capital growth in a thriving regional market.
This case study outlines how we used our SMSF to invest in property, secured a high-value home with strong rental returns, and built significant equity—all while maintaining full control over our financial future.
The Starting Point: Taking Control of Our Super
For years, our superannuation sat in a managed fund, growing steadily but without our direct involvement. With a balance of $250,000, we saw an opportunity to put our super to work in a more strategic and proactive way.
We knew property was a proven wealth-building asset, and investing through our SMSF would allow us to benefit from:
• Direct control over investment decisions, rather than relying on fund managers.
• Long-term capital growth and rental income from a high-performing asset.
• The ability to leverage our investment, amplifying our returns over time.
• Diversification within our super, reducing exposure to market fluctuations.
• Potential tax benefits under SMSF regulations.
By shifting our focus to property, we could create sustainable, long-term wealth while taking charge of our retirement future.
The Power of Leverage & Compounding Growth
One of the most significant advantages of property investing - particularly within an SMSF - is the ability to leverage borrowed funds to purchase a higher-value asset. Unlike share market investing, where direct leverage is less common and often riskier, property allows investors to control a large asset with a relatively small initial investment.
For example, with $250,000 in our SMSF, we were able to purchase a $650,000 property using a limited recourse borrowing arrangement (LRBA). This means we now control a $650,000 asset rather than being limited to investing just $250,000 directly in the market.
As property values increase, the entire asset appreciates, not just our initial investment. If the property grows in value by 6% per year, that’s a $39,000 increase based on the total property value - not just on our original $250,000 contribution. This compounding effect accelerates wealth creation over time.
Share market investments also benefit from compounding returns, but without leverage, growth is limited to the returns generated on the original invested amount. While shares provide liquidity and diversification, property investing within an SMSF offers the unique advantage of capital growth on a leveraged asset, combined with stable rental income.
The Investment: A High-Growth Property in a Thriving Regional Market
After extensive research, we identified a major regional centre in Northern Queensland as the ideal location for our SMSF investment. The area was experiencing strong population growth, a diverse economy, and significant infrastructure investment, making it a prime market for long-term property appreciation.
We purchased a five-bedroom, two-bathroom house on a 720m² block for $650,000. The property was well-positioned in a sought-after suburb with strong rental demand, ensuring consistent cash flow from day one.
Investment Snapshot:
• Purchase Price (2024): $650,000
• Estimated Value (2025): $730,000
• Weekly Rent: $690
• Annual Cash Flow: -$5,000
The Strategy: How We Made It Work
A successful SMSF property investment requires careful planning, compliance with regulations, and selecting the right market. Here’s how we structured our investment to maximize returns:
1. Setting Up the SMSF
We worked with an SMSF specialist accountant to ensure our investment complied with all regulatory requirements. This involved establishing the appropriate legal and financial structures to facilitate the property purchase.
2. Conducting Market Research
We analyzed various locations across Australia, looking for regions with:
Strong economic growth and employment opportunities.
Population growth and increasing demand for housing.
Government-backed and private infrastructure projects supporting future growth.
3. Finding the Right Property
With the help of local real estate professionals, we secured an off-market deal on a high-quality property that met our investment criteria. Before purchasing, we conducted thorough due diligence, including:
Building and pest inspections to ensure structural integrity.
Flood and fire risk assessments to minimize potential hazards.
Rental demand analysis to confirm strong tenant interest.
4. Property Management & Risk Mitigation
Once the purchase was complete, we engaged a professional property manager to handle leasing, tenant selection, and ongoing maintenance. We also secured landlord insurance to protect against unforeseen risks.
Why This Regional Market? The Power of Location
Investing in the right location is just as important as choosing the right property. Our selected Northern Queensland regional centre stood out for several reasons:
Property values had increased by 28% in the past year, signaling strong market momentum.
Over $15 billion in infrastructure projects were underway, driving economic expansion and job creation.
The city’s population was projected to reach 300,000 by 2030, ensuring continued demand for housing.
The economy was supported by multiple industries, including defense, education, healthcare, and manufacturing, reducing reliance on any single sector.
These factors combined to create a high-growth, high-demand property market, making it an ideal location for long-term investment.
The Results: Accelerating Our Retirement Savings
Within just five months, our property appreciated by $70,000, increasing in value to $720,000. This capital growth, combined with strong rental demand, positioned the property as a high-performing asset within our SMSF.
Although the property had a small negative cash flow of $5,000 per year, the long-term benefits far outweighed the short-term holding costs. With further capital growth expected over the coming years, this investment will play a key role in securing our retirement future.
Key Lessons: Why SMSF Property Investment Works
Looking back on our journey, several key lessons stand out:
Having control over your super allows for smarter, more strategic investment decisions.
Investing in high-growth locations ensures both capital appreciation and rental income stability.
The ability to leverage your investment amplifies long-term wealth creation.
Property offers a level of security and predictability that traditional superannuation investments may lack.
Proper research, due diligence, and professional support are crucial to maximizing investment success.
By using our SMSF to invest in property, we have built a tangible, appreciating asset that strengthens our retirement portfolio. This investment is not just about financial returns—it’s about securing financial independence and freedom in the years ahead.
Ready to Take Control of Your Super?
At start2invest, we specialize in SMSF property investment, helping everyday Australians take control of their retirement savings and build long-term wealth through strategic property purchases. We have successfully guided many clients through the process of setting up their SMSF, structuring their investments, and selecting high-performing properties that align with their financial goals.
With expert knowledge in SMSF compliance, lending structures, and market analysis, we ensure our clients make informed, secure, and profitable investment decisions. Whether you’re setting up your first SMSF or looking to expand your portfolio, we provide the expertise and support needed to navigate the process with confidence.
Get in touch with us at start2invest—we’d love to help you take control of your financial future and turn your super into a high-growth investment.
Disclaimer
This article is for general informational purposes only and does not constitute financial, taxation, or legal advice. start2invest is not a licensed financial adviser, and we do not provide specific financial advice tailored to individual circumstances. The investment case study presented here is based on our own experience and financial situation, which may differ significantly from yours.
Self-Managed Superannuation Funds (SMSFs) are regulated financial structures, and investing through an SMSF involves specific legal and tax considerations. We strongly recommend consulting a licensed financial adviser, SMSF specialist, and tax professional before making any investment decisions to ensure compliance with all regulatory requirements and alignment with your financial goals.
Disclaimer
This article is intended to provide general information only and does not constitute financial, tax, or legal advice. We recommend seeking independent advice from qualified professionals to address your particular circumstances and ensure compliance with all relevant laws and regulations. Investing in property involves risks, and past performance is not indicative of future results. Always conduct thorough research and consider your financial position before making investment decisions.
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