Aus-Property vs Stocks? The Real Math For Aus-Expats
20 April, 2026
I am a Financial Consultant for over 150 Australian Expats based in Singapore and one of the most common questions my clients ask me is why I refuse to buy an investment property in Australia. My answer is simple: I’ve done the math.
I once considered purchasing an investment property back home in Perth WA, so I pulled out my Excel sheet and crunched the numbers.
Here’s the scenario I ran:
- Purchase price: $1.5 million
- Expected growth rate: 6.5% p.a.
- Deposit: $500k AUD
- Loan: $1,000,000 million at 5.5% interest
- Stamp duty: 4%
- Ongoing costs: 2% land tax/strata + 0.5% upkeep
- Rental income: 4% of property value, minus 10% agent fees
- Selling costs: 2% agent fee on sale
- Capital gains tax applied on profit
I then compared this to putting the same capital of 500k AUD into the S&P 500 index instead.
The result: over 10 years, the property would leave me with about $600k AUD less than the stock market alternative. And that’s before factoring in the stress, time, and administrative headaches of owning an investment property. Tenants, agents, repairs, taxes and liquidity constraints. From a monetary and lifestyle freedom perspective, buying property made absolute no sense.
Conclusion: Most people never run these numbers. They let cultural conditioning, family pressure, and outdated narratives dictate their financial choices.
Do the math!
Want a more detailed look into the math and projections? Watch video below…
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Helping Australian Expats Make Smarter Financial Decisions
Hi, I’m Sean Abreu
I help Australian expats make smarter financial decisions while living overseas.
From investing and retirement planning to tax considerations and preparing for a future return to Australia, I help expats create clear and effective financial strategies.
A complimentary meeting is a valuable opportunity to review your current position, identify risks and opportunities, and gain clarity on the next best steps for your financial future.
Book your complimentary meeting today.
I’m a Financial Representative at IPP Financial Advisers. Regulated and Licensed by the Monetary Authority of Singapore (MAS).
