【2025 Latest Insights】Property to Fund Education: How Overseas Parents Use Australian Real Estate to Cover Tuition Fees
- Alison Tao
- Jul 23
- 4 min read
Updated: Aug 13
Did you know that the high cost of studying abroad can actually be covered through investing in Australian real estate? This article explores the concept of "Property to Fund Education," breaks down the real costs of holding property in Australia, and features two real-life case studies from Hong Kong parents who used tax and accounting strategies to turn high expenses into high returns.
What is “Property to Fund Education”? Why Has It Become So Popular Among Overseas Parents?
In Australia, more and more Hong Kong families are choosing to purchase real estate not just for investment, but to help pay for their children's education. This approach cleverly combines property investment, education funding, and tax planning. With proper strategy, rental income can cover most, if not all, of a student's tuition and living costs.
What Are the Real Costs of Holding Property in Australia?
Many worry about the “high cost” of owning property in Australia. In truth, these costs can be minimized—or even leveraged for tax benefits—when handled with proper legal and tax knowledge.
Main Costs Include:
Council rates, water/sewerage charges
Insurance and property management fees
Stamp duty (including foreign purchaser surcharge)
FIRB (Foreign Investment Review Board) application fee
Legal and registration fees
Capital Gains Tax (when selling)
✅ Tip: Take advantage of Australia’s “Depreciation” and “Negative Gearing” policies to significantly reduce your tax burden.
Case Study 1: Dr. Lam the Dentist – $24,700+ Net Income Per Year from a Dual Key Investment in Perth
Investment Overview:
Property price: AUD 700,000
Type: Dual Key house (two rentable units under one title)
Annual rental income: AUD 52,000
Out-of-pocket holding cost: AUD 8,704
Depreciation + interest deductible: AUD 28,000
After-Tax Analysis:
Taxable income: AUD 15,296
Tax (at 30% for foreign investors): AUD 4,589
Net income after tax: AUD 24,707/year
💡 Not only did the rental income cover his daughter’s AUD 20,000 tuition, but there was also over AUD 4,700 left for living expenses. In two years, the property value increased by AUD 150,000—more than enough to offset all holding costs.
Case Study 2: Mr. Chan’s Modest Budget Paid for 3 Years of His Son’s Tuition
Investment Overview:
Property price: AUD 358,000 (Brisbane apartment)
Annual rental income: ~AUD 23,400
Annual costs (including management fees): ~AUD 9,044
Depreciation: ~AUD 6,550
Total net cash flow over 4 years: AUD 48,056
✅ Mr. Chan’s rental income covered over 80% of his son's three-year tuition (approx. AUD 60,000)!
📈 Property value increased to AUD 530,000—a capital gain of AUD 172,000 with an ROI of 48%!
Comparison: Apartment or House—Which is Better for “Property to Fund Education”?
Category | Apartment (Mr. Chan) | House (Dr. Lam) |
Management Fees | Higher (strata fees) | None |
Stamp Duty | Calculated on full price | Land component only |
Rental Income | Medium | High (Dual Key) |
Depreciation | Lower | Higher |
Capital Growth | Moderate | Strong |
Tax Burden | Moderate | Lower (with deductions) |
📌 Conclusion: To reduce holding costs and maximize returns, consider House & Land Packages—especially Dual Key designs.
Why Is Australian Real Estate Still Attractive Despite the Costs?
Key Advantages:
Average gross rental yield: 5.04%
Tax policies such as depreciation and negative gearing reduce actual out-of-pocket costs
Forecasted capital growth:
Sydney +7%
Melbourne +6%
Brisbane, Perth, Adelaide +4–5%
Strong AUD rebound potential = capital + currency gains
Important Tax Considerations for Foreign Buyers:
Foreign Buyer Stamp Duty Surcharge
NSW: 13%
VIC: 13.5%
QLD: 11.5%
FIRB Application Fee
From 2025: AUD 15,100
Capital Gains Tax (CGT)
Payable on profit when selling property
Interest Deductibility
Mortgage interest (even offshore loans) may be tax-deductible
Conclusion: “Property to Fund Education” Is Not a Dream, But a Smart Strategy
Though holding property in Australia can be costly, with the right financial and tax planning, it can fully cover a child’s study abroad expenses while building long-term wealth. This is not just an investment—it's a safeguard for your family’s future.
📢 Want to learn more about how to fund education through property investment? 👉 Visit my website: InvestWithAlison.com to book a free one-on-one consultation, or leave a comment below!
Alison’s Story
Born in Hong Kong an moved to Australia, I have been associated with real estate all my life. As the plane slowly landed on the runway of Melbourne Airport, my life and career also changed to another runway. I changed from a Hong Kong real estate agent to an Australian real estate agent, and successfully obtained the Australian lawyer qualification.
When I was working in a law firm, I was surrounded by highly educated professionals. Even though their wages are very well, and they are absolutely the elites in society, but their lives are full of hard labor, and it’s hard for them to get rich through buying properties.
So I spend all my time and effort on learning financial and real estate investment knowledge, hoping to achieve financial freedom as soon as possible, and let my parents who have worked hard for many years live a good life.
Now I will share with you the knowledge and experience of investing in Australian real estate, and embark on the road to financial freedom together.
Alison Australian real estate information platform
The original intention of Miss Alison to establish investwithalison.com is to provide neutral Australian real estate information through this platform and help investors establish the most suitable investment strategy.
👉Website: investwithalison.com
👉Email: hello@investwithalison.com
👉Linkedin: linkedin.com/in/alisontaoaustralia/
