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.