Breaking the Mold: The Expat Family Who Didn’t Invest in Australian Real Estate
20 April, 2026
John and Lucy, two Australian expats living in Singapore, had saved AUD 500,000 over the past 10 years.
They understood that inflation would gradually reduce the value of their cash savings over time, so they knew they needed to invest rather than leave the money sitting idle.
They wanted to answer a simple but important question. Should they use their AUD 500,000 as a deposit on a AUD 1.5 million investment property in Australia, or would they be better off investing the same amount into the S&P 500 Index?
John, being very numbers focused, wanted to know which option was likely to produce the better outcome. Would the leveraged and taxed Australian property outperform the stock market, or would the tax free capital growth available while living in Singapore make the S&P 500 the better choice?
John was not an expert in financial modelling, so he booked a complimentary session with Sean Abreu, a financial consultant who works with Australian expats in Singapore, to run the numbers and compare both options properly before making a decision.
This is the scenario John and Sean worked through together:
Purchase price: AUD 1.5 million
Expected growth rate: 6.5% per annum
Deposit: AUD 500,000
Loan: AUD 1 million at 5.5% interest
Stamp duty: 4% in Western Australia
Ongoing costs: 2.4% for land tax and strata, plus 0.5% for upkeep
Rental income: 4% of the property value, less 10% in agent fees
Selling costs: 2% agent fee on sale
Capital gains tax applied on profit
John and Sean then compared that to investing the same AUD 500,000 into the S&P 500 Index instead.
The result was clear. Over 10 years, the investment property would leave John around AUD 570,000 worse off than the S&P 500 alternative. That is before even considering the stress, time commitment, lack of liquidity, and administrative burden that often come with owning an investment property.
John and Lucy also realised that while they were living in Singapore, the better strategy was to build wealth in the stock market first, then buy property later when they eventually returned to Australia, rather than doing it the other way around.
From a purely financial perspective, buying the property made little sense. High interest rates, land tax, and capital gains tax significantly reduced the overall return.
When asked why they chose not to buy an investment property in Australia while living in Singapore, John and Lucy said:
“Most people never run the numbers. Instead of getting proper advice and doing the maths, they let cultural conditioning, family pressure, and outdated beliefs shape their financial decisions. But wealth is not built by following the herd. It is built by removing emotion and making decisions based on mathematics and opportunity cost. The difference between a good investment and a bad one is not just a few percentage points. Over time, it can mean millions of dollars, and just as importantly, greater peace of mind and freedom over where and how you live.”
For a more detailed and in depth look into John and Lucy financial calculations watch the video below…..
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