The Problem:
Meet Gary and Kaye, seasoned property investors from Victoria, now investing in the Brisbane market. After many years as investors, they found themselves relying on negative gearing, holding underperforming assets that weren’t taking their portfolio anywhere. Like many long-term investors, they felt stuck, tying up capital in properties that weren’t delivering the returns they needed to keep progressing.
The Solution:
As they started rethinking their investment strategy, Gary and Kaye discovered rooming houses and connected with the High Yield Property Club. In this process, they found:
- Sacred Spaces: They were drawn to the concept of supplying affordable housing through sacred spaces. When asked what she loves about it, Kaye puts it simply: “Just the whole concept!”
- The Boondall Site: In a joint venture with the High Yield Property Club, they secured a large block in Boondall and subdivided it into 5 rooming houses. Where a single family, once lived on that land, the five rooming houses are now accommodating 25 people, supplying a real solution to the housing crisis.
- Cash Flow: They quickly saw the numbers stack up, comparing $100k to $40k in returns against a traditional rental, roughly 2 to 3 times the income. As the couple put it: traditional rentals leave you stuck; rooming houses triple your income and allow you to keep progressing.
- Confidence: They also appreciated how simple the High Yield Property Club made the process, which also gave them confidence. When Kaye first heard about done-for-you deals being offered by a team highly knowledgeable in this niche, she knew she wanted one for herself and got excited! As Gary describes it, “The deals come to you, all you have to do is sign. It’s a no brainer.” The High Yield Property Club gave them the confidence to know where to buy, and made it happen from acquisition through to tenants.
The Decision:
Gary and Kaye sold their underperforming assets and shifted their portfolio entirely into rooming houses. It meant letting go of old strategies that no longer served them and trusting a new model to carry their portfolio forward.
The Result:
Once open for tenancy, all rooms at Boondall site were taken immediately, with a long waiting list of people wanting to rent. They eventually sold four Boondall rooming houses and kept one. At the 12-month mark, two tenants stayed on and the three who moved on were replaced within a week, proof of just how strong the demand really is. They are now waiting for their new rooming house to finish and they are as excited for this one as they were for their first.
Gary and Kaye now see their rooming houses as a way to create legacy for themselves. They appreciate seeing real money come into their bank accounts, a welcome shift from years of negative gearing to genuine positive cash flow. The cash flow has helped strengthen their position with the banks, propelling their portfolio forward, and for many investors like them, even just 1 or 2 rooming houses is enough to meaningfully supplement their main income.