Scenario 1: High-Income, High-Target, Late Starter Couple (Conservative Couple)
Client Snapshot
Profile | Details |
Clients | 50-year-old Sydney couple (Husband in banking, Wife regional retail manager) |
Children | 3 (Ages 20, 16 & 11) |
Experience | Owned 2 properties in their 30s, now only hold a PPOR (Primary Place of Residence) |
PPOR Debt | $1,000,000 |
Household Income | $400,000 p.a. |
Savings | $100,000 |
Monthly Savings Rate | $2,000 |
Borrowing Capacity | ~$1.3M personal, ~$2.5M SMSF |
Superannuation Balance | $1,000,000 |
Goals | Pay off PPOR and achieve $250,000+ passive income within 10–15 years |
Strategic Considerations
This couple presents a classic “high income, late start, high ambition” profile — a financially strong position from an earnings and borrowing capacity perspective, but constrained by limited liquidity and a compressed timeframe.
Key Constraints:
- Capital (Cash & Equity): Only $100k liquid + PPOR equity
- Cashflow: Low monthly surplus for income level – limited holding cost tolerance in their personal name
- Timeframe: 10–15 years to eliminate $1M debt and build up a $250k+ income
- Lifestyle: Three kids, oldest transitioning into adulthood — future lifestyle decisions (e.g. possible downsizing) must be considered
- Limited portfolio wealth: PPOR as only leveraged assets, limited property growth
Key Opportunities:
- Strong SMSF balance + high SMSF capacity — great channel for quickly scaling
- High personal income — opens options for borrowing capacity and trust structuring to grow the personal portfolio
- Borrowing power still solid in both structures, offering capacity for multiple acquisitions
- Open to aggressive strategy — the clients understand the magnitude of their goal and are willing to act decisively, despite being more conservative previously
How we tackled their strategy
1. SMSF Acceleration Strategy – 3 Purchases in 12 Months
To capitalise on their $2.5M+ SMSF borrowing capacity, we moved swiftly to lock in a scalable, diversified SMSF portfolio:
- Purchase 1: ~$950k in Perth metro – capital city, high growth potential, decent yield
- Purchase 2: ~$800k in Melbourne – core city, foundation asset for long-term capital growth, lower yield
- Purchase 3: ~$650k in regional QLD or Darwin – balancing yield and growth, diversifying out from capitals
This structure:
- Spreads risk across geography and yield
- Prioritises high growth in a tax-favourable structure
- Aligns to SMSF’s passive, buy-and-hold investing rules
2. Personal Portfolio Expansion via Equity & Momentum
Despite limited cash, their strong borrowing capacity allowed us to:
- Pull equity (where available) or use higher leverage (e.g. 88% LVR)
- Target momentum assets offering equity upside within 2–4 years
- Focus on higher-yielding assets to support cashflow-neutral or slightly negative portfolios
The goal was to build equity quickly, then refinance or recycle equity to fund subsequent acquisitions.
3. Budget Intervention & Cashflow Management
With just $2,000/month in surplus, cashflow was a key constraint.
We worked with the clients to:
- Review personal spending habits
- Optimise tax and lending structure for maximum deductibility
- Identify areas to redirect surplus toward buffers and future deposits
- Model their portfolio trajectory based on different surplus improvements (e.g. increasing monthly surplus to $3,500 extends runway significantly)
Rationale Behind the Strategy
This multi-pronged plan addresses each constraint with an intentional solution:
Constraint | Solution |
Low capital (personal) | Use SMSF to absorb high-value purchases, use high leverage in personal |
Low surplus cashflow (personal) | Purchase higher-yielding properties personally, restructure budget |
Need for scale | Tap both personal and SMSF borrowing caps aggressively early |
Short runway | Condense acquisition period |
Desire for income | Layer in commercial or hybrid plays later to increase passive income |
Future flexibility | SMSF growth and potential PPOR downsize can clear debt faster in later years |
We also deliberately prioritised:
- High price point properties in SMSF (reduces personal cashflow burden)
- More balanced plays personally (higher yield)
Outcome & Long-Term View
In the first 12–18 months, this couple will have deployed across:
- ~$2.4M in SMSF assets
- ~$1M–$1.3M in personal assets (2–3 properties)
By year 3–4, if equity has grown and cashflow remains stable:
- Additional purchases can be made personally or via debt-excluded trust strategies (purchasing second personal property in a trust, if cashflow allows)
- Strong SMSF equity enables a low-leverage commercial play in future
- PPOR sale or downsize could be used to eliminate residual debt and bolster passive income at the back end
Key Takeaways
- Late starters can still reach high targets, but must act boldly and decisively
- SMSF is a powerful channel for investors with high super balances and limitations in their personal portfolio
- Portfolio planning must integrate cashflow, capital, capacity — all three must be managed concurrently
- The client’s mindset and willingness to engage with the numbers plays a pivotal role in their ability to scale
This scenario shows how high income alone isn’t enough — it’s the right structure, the right speed, and the right assets that drive progress.
Scenario 2: High-Income, Early 40s, Focused Capital City Buyers (Legacy Builder Couple)
Client Snapshot
Profile | Details |
Clients | 42-year-old couple, both General Practitioners (GPs) |
Children | 3 school-aged children |
Experience | PPOR in regional NSW, plus 1 IP in Melbourne and 1 IP in Perth |
PPOR Debt | $630,000 (but planning to sell in ~3 years) |
Household Income | $530,000 p.a. |
Savings | $60,000 |
Monthly Savings Rate | $15,000 |
Borrowing Capacity | ~$810,000 (personal) |
Superannuation Balance | $190,000 |
Goals | Build a $200,000 passive income by age 55 |
Strategic Considerations
This couple has strong income, good savings discipline, and a relocation plan to Melbourne in the next few years. They’re ambitious and want to build wealth rapidly, but are particular about only purchasing in capital cities, which limits their market options and requires more consideration with their purchase planning.
Key Constraints:
- Geographical restriction to capital cities only (excluding higher-yielding regionals)
- No trust structure yet — future flexibility needs to be built in as portfolio grows
- Limited timeframe - shorter window but already have two IPs on their journey
- Limited capital for personal purchases until PPOR is sold
- Low SMSF balance currently (but nearing trigger point)
Key Opportunities:
- Very strong household income and savings rate
- Ability to scale with aggressive acquisition once PPOR is sold
- Can position now for SMSF entry within 6–12 months
- Already hold 2 solid assets — now building for scale and alignment to long-term plan
How we tackled their strategy
1. Capital City Momentum Purchase – Personal Portfolio
The next purchase was targeted to be:
- Capital city only (Melbourne or Brisbane)
- We did try to educate them, but they were steadfast in only wanting capital cities. Task here is to nurture and potentially open them up for the next purchase within SMSF
- Max budget of $850k
Due to their capital city preference, regional diversification was ruled out, and Melbourne and Perth already provided some cycle spread. We were fine with doubling down on Melbourne as one would become their PPOR.
Trusts were not required for this purchase since they’re holding off until their PPOR is sold and borrowing capacity is restored.
2. Planning the Next Move – PPOR Exit & Trust Use
When the NSW PPOR is sold (in ~3 years), we will:
- Free up borrowing capacity and capital
- Reintroduce trust structures for future purchases to support long-term serviceability and potential siloing
- Allow for geographic diversification with more flexibility in market selection
3. Preparing for SMSF Entry
While not immediately viable, their SMSF balance is approaching the $200k+ trigger point. We began early conversations around:
- SMSF lending readiness
- Property types and states better suited for SMSF
- Leveraging SMSF for more stable, high-quality, long-term foundation assets
Rationale Behind the Strategy
Constraint | Solution |
Capital city preference | Adjusted budget upward to reflect quality requirements in desired locations, while reinforcing that there may be better alternatives and this is their preference. |
No trust structures yet | Delay using trust structures until PPOR sold and capacity is unlocked. There is argument that we still should consider it, but given their circumstances it makes more sense for the next purchase, given this one is likely to be quite negative cashflow. |
Moderate capital base | Target capital city purchase under $850k, still achievable with their budget |
SMSF below action point | Begin SMSF education and prepare for deployment within 12 months |
By focusing now on a well-selected metro asset, and timing SMSF and trust usage in stages as the further parts to grow their portfolio, we can still achieve portfolio growth aligned to their long-term goal.
Outcome & Long-Term View
In the next 12–24 months:
- 1 personal purchase in a capital city (~$850k range)
- Begin SMSF acquisition planning
- Sell PPOR in ~3 years to:
- Clear existing debt
- Unlock capacity
- Launch second growth phase with trust structuring
This path balances their lifestyle objectives (Melbourne relocation) with their wealth-building goals.
Key Takeaways
- Capital city preference requires realistic budget adjustments
- Strong incomes enable significant flexibility — but structuring benefits are limited with their preferences and circumstances
- SMSF and trust usage can be staged around key life events (e.g. PPOR sale)
- Clients with higher expectations on quality/property standards need market education and price alignment early
- This couple’s clarity on goals, savings discipline and commitment to action positions them well to build wealth over the next decade — provided market selection and timing are handled with precision
This scenario shows how high-income earners with strict preferences can still succeed, by combining strategic staging with smart financial planning.
Scenario 3: Young Professional with High Savings & Flexible Future (Ambitious Climber)
Client Snapshot
Profile | Details |
Client | 32-year-old single female, rentvesting in Sydney |
Children | None |
Experience | First-time investor |
PPOR | N/A – renting in Sydney |
Household Income | $230,000 p.a. |
Savings | $450,000 |
Monthly Savings Rate | $4,000 |
Borrowing Capacity | ~$1,400,000 |
Superannuation Balance | $107,000 |
Goals | Retire early by age 50 with ~$150,000 passive income |
Strategic Considerations
This client is in a strong financial position with high income, excellent savings, and no personal or financial obligations — but her future is intentionally flexible. She is unsure whether she’ll settle down, have a family, or relocate in the next 5+ years, and she is prioritising lifestyle and optionality (e.g. travel, freedom) later in life. Given her path so far, it’s likely she will be a continuing down a strong career path.
Key Constraints:
- No clarity on long-term personal direction — so flexibility can be referenced in the strategy
- Trust vs personal name — hard to plan for given fluidity, but light planning is important now
- No investment experience — education and comfort with process is important
Key Opportunities:
- $450k in cash — rare for a first-time investor, allows for back-to-back purchases
- Strong income + low living expenses — high savings velocity can fund further expansion quickly
- Open mindset + long runway — time and capital enable a scalable portfolio over the next 10–15 years
How we tackled her strategy
1. Foundation Asset in Melbourne – Personal Name
The first step was to secure a strong foundational asset:
- ~$800k property in Melbourne
- In personal name to maximise tax deductibility
- Longer-term growth focus in a capital city market that fits her conservative starting position
This forms the base of her portfolio and is structured with flexibility for future moves.
2. Momentum Asset in a Trust – Immediately After
With markets like regional QLD and WA accelerating, we moved quickly to secure:
- ~$650k momentum property in a trust
- Using 20% cash deposit to avoid relying on equity from the Melbourne purchase
- Markets selected to diversify cycles and maximise short- to mid-term equity uplift
This adds scale, growth potential, and preserves borrowing capacity via siloed trust debt over time.
Rationale Behind the Strategy
Constraint | Solution |
Unclear future | Blend of personal and trust structures to retain optionality and preserve borrowing |
No equity reuse (yet) | Use 20% deposits to purchase both assets upfront, less aggressive for now but appropriate. Could argue that 90% is the way to go but she wasn’t comfortable with scaling quicker than what we have. |
Limited time for delay | Prioritised quick momentum asset purchase before growth cycle peaks |
Need for diversification | Melbourne capital + regional WA/QLD = diversity in location and market cycles |
Tax and capacity planning | Personal name = higher negative gearing; trust = preserves borrowing power with asset that’s higher yielding |
The dual-purchase approach ensures she isn’t delaying opportunities and takes advantage of her strong savings position.
Outcome & Long-Term View
In the first 6–12 months:
- Purchases 2 properties:
- 1 x foundational capital city asset (personal)
- 1 x momentum regional asset (trust)
- Portfolio begins compounding across different cycles
- Trust structure sets up future siloing opportunities as cashflow neutral position is achieved
Within 2–3 years:
- Equity and savings allow for next phase of scaling (potential third purchase)
- If life circumstances shift (partner, career change, location), the portfolio remains flexible
Key Takeaways
- High-capital, high-income young professionals can leap ahead early if delays are avoided
- Diversification across structure (personal/trust) and markets (capital/regional) builds strength
- Using cash now unlocks trust strategy benefits faster, rather than waiting on equity movement
- When personal life direction is uncertain, portfolio flexibility and long-term optionality become critical
This strategy sets her up with two quality properties from the outset — delivering cashflow, growth, and future-proofing her ambitions for financial freedom by 50 with just a bit more work after this.
Scenario 4: Mid-Career Investor with Aggressive Income Goals (The Busy Professional)
Client Snapshot
Profile | Details |
Client | 38-year-old unmarried male |
Relationship | In a 12-month relationship — partner wants kids and a Sydney PPOR |
Experience | Owns 3 properties, one in Brisbane, one in Townsville and an underperformer in regional QLD |
PPOR | Renting |
Household Income | $200,000 p.a. |
Savings | $400,000 |
Monthly Savings Rate | $3,000 |
Borrowing Capacity | ~$650,000 personal, ~$750,000 SMSF |
Superannuation Balance | $160,000 |
Goals | $200,000 passive income in 7 years (retirement age 45) |
Strategic Considerations
This client presents as a mid-career investor with a partially built portfolio, a high passive income target, and a short runway. His current relationship adds layers of potential lifestyle and financial changes, including a future family and potential PPOR in Sydney.
Key Constraints:
- Short timeline — only 7 years to reach $200k passive income target
- Future lifestyle change — possible PPOR purchase with partner within 5 years
- Limited personal borrowing left — only one more personal purchase viable
- Undershooting asset — one property dragging portfolio performance
- Aggressive income target may not align with current assets or trajectory
Key Questions Raised:
- Does “retirement” mean full income replacement, or is part-time work acceptable?
- Is he open to chasing cashflow at the expense of capital growth?
- How was the $200k passive income goal determined — realistic or arbitrary?
- Is he comfortable selling underperforming assets to reallocate capital?
- Will he need to preserve capacity for a future PPOR purchase?
How we tackled his strategy
1. Residential Acquisition Phase (2 Purchases)
Before moving into commercial, the strategy focused on maximising borrowing capacity and equity growth:
- Purchase 1: ~$650k residential property in a trust structure
- Targets solid yield and capital growth
- Trust helps silo debt and preserve serviceability given his limited capacity
- Purchase 2: ~$750k property in SMSF, ideally in Melbourne for long term growth
- Adds diversification and longer-term upside in a tax-efficient environment
These two moves leverage both remaining channels — trust and SMSF — while also keeping PPOR capacity intact.
2. Asset Review & Reallocation
- Research initiated on the underperforming property
- If performance outlook is weak, sell the asset to:
- Free up capacity
- Build capital for future commercial acquisition
- Reduce overall portfolio underperformance
3. Commercial Pivot After Residential Base is Set
Once the additional resi assets are secured and the underperforming asset is potentially sold:
- Proceeds used to fund a commercial acquisition
- Commercial will be cash-funded or low-leverage to generate $40k–$60k+ income
- This forms the back-end passive income he’s seeking
Rationale Behind the Strategy
Constraint | Solution |
Insufficient cashflow if going commercial now | Add residential first, then recycle into commercial |
Maxed out personal capacity | Use trust for personal resi purchase to preserve borrowing where we can |
Low-performing asset dragging performance | Sell Beaudesert property to recycle capital |
Short runway for passive income goal | Use layered approach: resi first → sell → commercial later |
Future PPOR plans | Keep capacity available by shifting final purchase to trust, but not stopping the journey because of it |
Modelling showed that going straight into commercial now would not achieve the passive income target — even with 105% lending. The two new residential properties build the base, and later reallocation of capital into commercial creates a better passive income pathway.
Outcome & Long-Term View
In the next 12–18 months:
- 2 new residential properties added (~$1.4M total)
- Review and potential sale of underperforming asset to redeploy
- SMSF channel utilised and growing for long-term compounding
Within 3–5 years:
- Recycled capital + improved equity enable commercial purchase
- Commercial property forms core income-producing asset (~$60k–$100k yield potential depending on asset)
By year 7:
- Portfolio contains 2–3 strong residential assets
- 1–2 commercial assets in place delivering bulk of passive income
- Residual capacity held in reserve for potential PPOR with partner
Key Takeaways
- Aggressive goals with short timelines require multi-step planning — not a one-size-fits-all move
- Residential can still play a role in building equity and funding commercial down the line
- Selling poor-performing assets is often essential in portfolio optimisation
- Flexibility in structure (trust, SMSF) and sequence of purchases is critical when future lifestyle changes (PPOR, kids) are on the horizon
- Commercial is powerful, but best used after capital and capacity are optimised