Lot 19, Benjamin Terrace New Norfolk, TAS

“New Norfolk SMSF Dual-Key with $46.8 k Income, 6.3 % Yield and 8.6 % Capital Growth in High-Demand Hobart Fringe”

Property analysis by:

Investment Highlights

• SMSF-approved dual occupancy turnkey at $746 000 total, returning a projected $46 800 p.a. across two separate leases.
• Independent rental appraisal confirms $450 pw per villa – providing a combined 6.3 % headline yield with cash-on-cash uplift potential.
• Builder pays strata title costs – enhancing value and simplifying ownership structure for SMSFs.
• Positioned in New Norfolk, Tasmania – 25 km from Hobart with 0.8 % vacancy and tightly held stock across detached housing.
• Dual 2 bed / 1 bath / 1 garage villas – 166 m² build on a 704 m² block with high-spec turnkey inclusions.
• 8.6 % 10-year average capital growth and projected asset value of $1.71 million in 10 years.

Key Financials

Total package price (SMSF): $746 000
Land / build: $640 000 + $106 000 single-part SMSF compliance setup
Configuration: 2 x 2 bed | 1 bath | 1 garage
Land / house size: 704 m² / 166 m² total
Rental appraisal: $900 pw total | $450 pw each villa (independent appraisal)
Annual gross income: $46 800
Gross yield: 6.3 %
Vacancy rate: 0.8 % (New Norfolk)
LVR: 70 % (SMSF lending)
Loan amount: $522 200 @ 6.7 % interest
Loan repayments: $34 987 p.a.
Est. pre-tax cashflow: -$3 140.85
Cash-on-cash return: -1.2 % (improves significantly with depreciation and SMSF tax shield)
10-year value forecast: $1.71 million

Location & Growth Drivers

New Norfolk is a strategically located satellite hub just 25 km from Hobart. With a population over 6 000 and a tight 0.8 % vacancy rate, the town presents a rare combination of rental resilience, high yield, and strong owner-occupier fundamentals.

Over the past decade, the suburb has seen average capital growth of 8.6 % per annum on houses, with median prices holding firm around $460 000 in 2025 despite interest rate volatility. Median rent for houses is $463 pw, and gross yields for houses sit above 5.2 %, putting this investment ahead of market benchmarks.

Employment in the area is driven by trade, health and personal services, and there are multiple schools, childcare centres and a local hospital (New Norfolk District Hospital) supporting long-term tenancy stability. The property also sits within a region where stock remains scarce – just 59 sales listings recorded in the latest quarter across all dwellings.

Build Specification (Turnkey)

• 250 L electric hot water systems (per villa)
• 600 mm ceramic cooktop & dishwasher
• Electric reverse-cycle air-conditioning
• Tiled floors in bathrooms, toilets & laundry
• Motorised garage doors with remotes
• Driveway and fencing included to plan
• Full floor coverings throughout
• SMSF-ready turnkey delivery (compliant single-part contract)

Why This Deal Stacks Up

1. SMSF-compliant setup with single-part contract structure and 30 % deposit structure fits superfund investment rules.
2. Dual-tenancy reduces risk: Consistent $450 pw from each villa and diversified rental exposure.
3. Cashflow-friendly yield of 6.3 % can support SMSF servicing goals and long-term retirement planning.
4. Location with low vacancy and strong ownership demand: Renter/owner mix balanced at 69 % home ownership.
5. Builder pays strata title and turnkey inclusions mean no out-of-pocket surprises or delays.

Risks & Mitigations

• Loan servicing pressure: Rate buffer already applied at 6.7 %; SMSF tax offsets and depreciation may improve post-tax returns.
• Construction delay: Builder engaged under fixed-term contract with strata obligations and cost certainty.
• Rental mismatch: Dual-rent design helps mitigate risk of full vacancy; confirmed market demand supports $450 pw per unit.
• Exit timing risk: Below-median dual-key properties typically attract strong investor interest due to cashflow performance.