The “One-Stop-Shop” Get-Rich-Quick Case Study's

Here are 2 live case studies which I have reviewed this month. I see several just like this every year.

For the full and linked articles see our Substack

https://forgetthebanks.substack.com/p/the-one-stop-shop-get-rich-quick

Case Study 1 – Off-the-Plan Apartment (Canberra)

Clients: Victorian couple
Scenario: Engaged a property group after targeted advertising. The group convinced them to buy an off-the-plan apartment in Canberra, promising it would be positively geared in the long term.

Purchase Details:

• Year: 2021 tax year

• Purchase price: $580,000

• Purchase costs: $32,000

• Total cost base / borrowing: $612,000

Financial Outcome (4.5 years later):

• Cash flow negative (excluding depreciation): $52,000

• $52,000 of after-tax income spent to date.

• Savings have been depleted and no borrowing capacity to buy a home to live in

• Property now for sale: $490,000–$520,000, still on the market with no offers

Break-Even Analysis:

• To break even, including sale costs, they would need to sell for ~$633,000

• Selling at $633,000 creates a capital gain of $40,000 due to depreciation over the 4 tax years.

  • 50% CGT discount → $20,000 capital gain

  • Tax at 30% bracket → ~$6,000 payable

• To avoid a tax bill entirely, sale price would need to be ~$673,000

Likely Outcome:

• Sale price: $550,000

• Sale costs: $20,000 → $530,000 cash released

• Cash loss: $52,000

• Sale loss: $82,000

• Total loss: ~$132,000 over 4.5 years

Conclusion:

• Likely worse off if the property takes longer to sell or at a lower price.

• Even with income tax reduction over the last 4 tax years clients are in a significant loss position.

Case Study 2 – Off-the-Plan House (Queensland) with body corporate costs for communal pool and BBQ area. Community titled.

Clients: Queensland couple
Scenario: Engaged a property group after targeted advertising. The group convinced them to buy an off-the-plan house in Pimpama, QLD, promising it would be positively geared in the long term.

Purchase Details:

• Year: 2023 tax year

• Purchase price: $715,000

• Purchase costs: $25,000

• Total cost base / borrowing: $740,000

Financial Outcome (3.5 years later):

• Cash flow negative (excluding depreciation): $39,000

• $39,000 of after-tax income spent to date

• Half their savings exhausted, no borrowing capacity to renovate their home

• Property market value: bank valued in Oct 2025 at $814,000

Sale Scenario:

• Likely sale at $814,000

• Sale costs: $24,000 → $790,000 cash released

• Amount spent: $740,000 → inflation adjacent gain: $50,000

Capital Gains Analysis:

• Original cost base: $740,000 + $24,000 sale costs – $45,000 depreciation → cost base $719,000

• Capital gain: $814,000 – $719,000 = $95,000

• 50% CGT discount → $47,500 taxable gain

• Tax at 30% → ~$14,250 tax payable

• Net gain: $35,500

• Cash loss: $39,000

• Overall result: $3,500 behind over 3.5 years

Conclusion:

• Clients are likely doing better than breaking even after income tax reduction over the last 3 tax years, but only if the property sells at current market value.

• A lower sale price would likely result in an overall loss.

Be careful who you listen to.