Background
A client was seeking their first investment and was looking for a high yielding property that would enable them to receive a positive cashflow. The client was in the position to undertake a Rooming House strategy with sufficient borrowing ability. A block of land was sourced through networks and contacts. An assessment of the block constraints, Council guidelines, and local demand showed that it would suit a rooming a Rooming House project.
Outcomes
The client undertook the Rooming House project and the property was completed within contract time. The rooms were fully rented in a timely manner and the client is now receiving total rent for the property of $1,500 per week, enabling a positive cash flow of over $700 per week, and a project yield of over 10%.
