New Property Australia

Rooming House

New Property Australia is focused on guiding property investors on whether a rooming house is the right option. It can drive considerable return, but it’s not for everyone.

What are Rooming houses?

Rooming house investments offer the opportunity to lease each lettable space separately. By doing this, high yields are achievable, and in some cases 10% or better may be possible.

Whilst each habitable space is self-contained, under rooming house legislation there is a requirement for a common area that includes 1 shared laundry, kitchen and living area which allows the higher returns to be achieved. This does vary from council to council. Rents achieved from this type of dwelling are far higher than letting a single house in the same location.

Rooming houses are managed by specialised and experienced Property Managers, who have each tenant sign a separate lease. Each lettable space is self-contained and includes an ensuite, small living area, kitchenette, and sometimes may have external access. The maintenance of the shared areas, plus the costs of water, electricity and Internet are the responsibility of the property owner. A rooming house is a residential dwelling that is certified as class 1B, and specifically designed for separate tenancies. In Brisbane City Council Area, a rooming house has a maximum of 5 lettable areas, with a maximum of 5 unrelated parties, and a total floor area no larger than 300m2.

Benefits

What are the unique gains for Rooming house prioerty investors:
  • Up to 5 separate rents for the one dwelling/block of land

  • For a low-density residential block this is the highest and best use of the land

  • Each room is completely independent and lockable

  • Risk mitigation by having separate leases. If one person moves out, there are still up to 4 rents coming in until a suitable replacement tenant is found.

  • Only one set of rates are payable for the property

  • It supplies affordable housing in locations where it may otherwise be unavailable

  • High depreciation due to the level of fixtures, fittings, and furniture etc

  • No Body Corporate fees

  • Supplies positive cash-flow and high rental yield to the investor

  • In many instances these properties are code assessable meaning they do not require any specialised development approval

  • Only one set of rates are payable for the property

  • In many instances these properties are code assessable meaning they do not require any specialised development approval.

From The Street They Look Like An Attractive Home

apartment-like studios

 

Whilst on the outside, these rooming house investments look like an attractive family home; on the inside, they have up to 5 semi-self contained apartment-like studios.

 

These studios are specifically designed to be let out separately. Each of the studios has the following:

  • A kitchenette with rangehood, sink etc.
  • A full ensuite bathroom.
  • Lounge and sitting area
  • Robes and storage
  • Split system reverse-cycle air conditioners and ceiling fans.

Rooming House Investments

Higher Yields and less fees and hassles than apartment projects

These Rooming House investments allow up to five rents from one property. It is similar to having an apartment development. However, If we were to build a comparable apartment project, we would face hundreds of thousands in associated fees from Council. This would include development costs, DA submissions, headworks, engineers, architects, town planners… the list goes on. Plus, we would need more expensive, higher density land. These fees, risks and uncertainty all diminish the yield and viability of an apartment project. But with a Rooming House, we are able to get approvals on a standard residential block of land. 

Major Demand for this type of studio apartment

We have discovered a huge demand from young professional tenants for this type of self-contained product. This has only increased in recent times, with the increasing interstate migration putting pressure on an already stressed rental market. It is predicted that as the international borders re-open, this will only serve to exacerbate the situation. 

For our product, we target suburbs and areas where there is good demand from tenants and not and not of readily available comparative studio or 1-bedroom rentals.

There are a substantial number of singles and couples who require one-bedroom and studio accommodation. According to the Australian Bureau of Statistics (ABS), 23.5% of the total Queensland households are single-person households, and 35.1% are two-person households. 

That suggests that 58.6% of the total households in Queensland are two persons or less. However, according to the ABS number of bedrooms per dwelling data, only 5.2% of dwellings in QLD are one-bedroom, and 15.7% are two bedrooms. Only 20.9% of homes have two bedrooms or less.

So from the ABS data, it can be surmised that there is a massive disconnect between the number of people in a household and the number of bedrooms in available accommodation, with 58.6 % of households in QLD having two persons or less and close to 70% of the available accommodation being 3 – 5 bedrooms plus.

Importantly for our studio accommodation, 23.5% of the population in QLD are single-person households, yet only 5.2% of the dwellings are one-bedroom or studio.

This shows that Rooming House Investment properties serve as an essential and strategic class of investment property.

deal directly with the builder and speak to an expert today!

At New Property Australia, we have literally been involved in hundreds of new property builds for our clients. We are passionate about finding the best Rooming House investment opportunities for our clients and have an extensive network of industry professionals to allow us to offer the best high yielding properties.

We use our team of building designers and draftspeople to offer the most aesthetic facades and effective floor plans. We then have our panel of approved builders tender for the build providing us with the best price and timeframe for the build. This enables us to offer our clients a well-designed and more competitive product.

The rules regarding Rooming House properties can be complex, and in fact, they are different across every State and Council area. We have the expert staff and team members to be able to provide you with up to the minute advice on what you can build and how you can maximise your investment.

articles and case studies

Banyo, Rooming House

In this New Property Australia Case Study A client was seeking their first investment and was looking for a high yielding property that would enable them to receive a positive cashflow.

Read Now

Why wait? Get in touch today...

The team at New Property Australia is readily available to discuss your property investment goals and what the next steps in your property investment journey should be.

0/5 (0 Reviews)
Shape

Consider Your property investment options

Explore other Property Types

New Property Australia helps investors of all shapes and sizes to consider all their options, get everything lined and then to make the most on their journey to propoerty investment prosperity.

About Us

New Property Australia has been helping property investors of all levels of experience make the right decisions to realise their wealth goals.

Property Type Details

Apartments

New Property Australia have numerous key relationships with different apartments developers and builders across Australia, allowing us to have access to the latest and most in-demand developments for our clients.

Property Type Details

Co-Living

Dual Occupancy is a property investment option that many of New Property Australia’s customers consider. Enquire today to find out if it is the option for you.

Property Type Details

stay connected

News & Updates

Keep up to date with the latest news from New Property Australia. We are Always adding new articles, video content, case studies and testimonials from our happy customers.

Suburb Profile Logan Central

This Suburb Profile Logan Central will explain the new Infrastructure and projects happening in the suburb which make it a good opportunity for both investors

Read Now
Shape
17167

Investment Security Guide

FREE

Download our free Investment Security Guide with advice from experts

This website uses cookies to ensure you get the best experience on our website.