Rooming accomodation can be an investment opportunity that offers a high rental return with mitigated risk. While many attractive prospects seem promising, for those living in Brisbane, one property type stands above the rest: Rooming Accommodation.
What is A Rooming Accommodation?
Rooming Accommodation in Brisbane is a Class 1B dwelling with individual rental rooms. According to the Brisbane City Council, Rooming Houses must have a total floor area of no more than 300m² with a maximum of five lettable areas. Each individual room may house one person, with a maximum of five unrelated parties residing in the house.
Rooming Houses have a common area, which includes a living space, kitchen, and shared laundry. Each semi-self-contained room includes a private bedroom, living area, bathroom, kitchenette, and lockable door.
High-end Rooming Accomodation also offers an outdoor living space and solar power to help reduce costs and make the property feel like a home. At The High Yield Property Club, our Rooming Accommodation Investments offer everything a single person household renter could need and want, which is why our properties generate the highest rental return of 8% or more per annum.
Why Is Rooming Accommodation A Great Investment?
Rooming Houses are an excellent investment choice due to their high yield and high capital growth potential. It is also a high social impact investment, which means your investment dollars are making a difference to people’s lives amidst a huge rental crisis in Brisbane.
When using The High Yield Property Club for investing in rooming accommodation, you can generate 8%+ rental returns. How is this possible? Let’s take a look at why Rooming Houses are your ticket to financial security for generations to come.
High Demand :
Brisbane is one of the fastest-growing cities in Australia, with a projected 16% growth expected by 2032. According to the Federal government, this expansion is due in part to the city’s winning bid to host the 2032 Olympic games. Another reason for the high demand for affordable Rooming Houses is the unprecedented housing crisis. Currently, there is an undersupply of affordable housing options within the city and its surrounding neighborhoods.
The high price of materials, which started during the pandemic and shows no sign of stopping, is pushing investors away from affordable housing investments and toward the luxury market. While those able to afford these auspicious homes have ample supply, residents in need of inexpensive housing are forgotten. Added to this lack of rental options is a growing demographic of young, single professionals seeking smaller, more affordable accommodations. All factors combine to create an exciting opportunity for the savvy investor. Rooming Accommodation meets the needs of this sought-after demographic while providing a financial safety net through high rental returns. Talk about a win-win.
Reliable Rental Income :
Unlike a single-person dwelling, Rooming Accommodation provide a reliable income even if one tenant moves out. Since there are five rental leases per property, you will continue to receive revenue if a room becomes vacant. However, the rooms won’t sit for long due to the high demand and low supply of affordable housing in Brisbane. In fact, the majority of Rooming Accommodation rooms rent quickly. A typical new rooming accommodation micro-apartment in the Brisbane City Council area rents between $350 – $420 per week, which adds up to a minimum of $1,750 per week. That means you can expect an approximate passive gross monthly income of $7,000 per month! That’s a life-changing amount.
High Tax Depreciation :
Rooming Accommodation when built and furnished correctly offers an excellent tax depreciation benefit, adding to their profitability. At The High Yield Property Club, we increase this benefit by sourcing high-quality fixtures and furniture available in affordable packages. Attention to detail through furnishings and design increases your investment’s tax depreciation value. Additionally, it ensures you receive the highest return on investment. We proudly offer our property investors the opportunity to engage the services of one of our partnered quantity surveyors. They create a comprehensive deprecation schedule, ensuring you get the most out of your asset.
Is Rooming Accommodation Profitable?
Rooming Accommodation in Brisbane are one of the most profitable investments you can make. While receiving an 8%+ rental yield can provide financial stability now, Rooming Houses have long-term earning capabilities. One exciting way Rooming Accommodation is profitable is through capital growth.
At The High Yield Property Club, we’ve spent 40 years gaining comprehensive knowledge of Brisbane and the surrounding areas. As such, we know which locations are in high demand for tenants and which will produce the highest capital growth. Capital growth is the amount the value of an investment or asset increases over time. To determine this number, measure the difference between a property’s current market value from when it was acquired.
According to CoreLogic, Brisbane’s property value will continue to grow at an impressive rate, increasing its impressive 3.7% incline. Add to that the expected population boom within the next ten years. All said Rooming Houses in Brisbane are poised to become one of the most lucrative investment opportunities for those seeking a reliable, passive income.
How Do I Invest in Rooming Accommodation?
Investing in Rooming Accommodation can feel like a monumental task, especially for first-time investors. There are many aspects to consider before you begin, which is why choosing a trusted company like The High Yield Property Club is so important. When building a Rooming House, be sure to consider the following.
Location :
Choosing the right location is crucial to the success of your investment. Brisbane is one of Queensland’s largest capital cities, spanning an enormous 15,842 kilometer’s. Five urban centers comprise the city as a whole: Brisbane City, Redland City, Moreton, Logan City, and Ipswich. Knowing which location attracts your ideal tenant, which areas are renting the fastest, and neighborhood statistics are key.
At The High Yield Property Club, our extensive knowledge of the Brisbane real estate market allows us to walk you through this process, choosing the ideal spot for your investment. Thanks to thoughtful exterior design, most Rooming Houses look like private homes, ensuring they fit well in both high and low-density residential blocks. Ultimately, the tenant gets the benefits of living in a private space in a prime location they may not have had access to otherwise.
Your Ideal Tenant :
The ideal Rooming House tenant is a single, young professional seeking an affordable accommodation solution. While this demographic was often overlooked in the past, it has quickly become one of the fastest-growing in Brisbane. These hard-working potential renters contribute to the community and are searching for a safe and inviting place to call home. While there are ample properties available for families, single tenants have few options. By creating a specific space for this sought-after demographic, you’re contributing to solving Brisbane’s devastating housing crisis.
Your Time Investment :
Building Rooming Accommodation can be a timely and highly involved process. You must follow codes and permits, locate the right location, choose a design, and more. The High Yield Property Club takes over all of these tasks so you can sit back and relax. We do everything, from sourcing the land to working with the builder and interacting with your property manager. We understand that you are busy; that’s why we streamline the process so you begin making money faster. Additionally, we ensure every aspect of your build is in compliance with all local and Federal guidelines, providing unmatched peace of mind.
The Benefits of Working with The High Yield Property Club
When investing in a Rooming House, you want the backing of a trusted company that understands the complexities of the specific market. The High Yield Property Club has you covered. The Chairman and Founder, Kevin Doodney, uses his expertise to ensure you receive a minimum 8% yield on your investment. What are a few of the many benefits of working with The High Yield Property Club?
Portfolio Growth :
When you see the profits your Rooming House generates, you’ll most likely want to invest in another property. Thanks to the higher yields generated through The High Yield Property Club, $90k+ per annum, per Rooming House, it’s possible. Add to this return your property’s prime location within Brisbane and its probable immediate equity uplift, and you’ve built an impressive portfolio quickly. The more Rooming Houses you build, the greater your portfolio becomes, making an exciting cycle that leads to impressive passive income for generations.
Higher returns :
Compared to traditional rental properties, Rooming Houses significantly outperform on returns. You can expect an annual income between $82,00 and $100,000 per Rooming House due to the higher number of tenants. The High Yield Property Club walks you through the financial logistics so you know what to expect and can make the most of your investment.
Peace of Mind :
Since we oversee the entire process, you never have to worry about your investment. We partner with trusted builders, handle all city compliances, and work with your property manager. At The High Yield Property Club, we are passionate about your success and make it our goal to ensure your investment becomes a legacy for generations to come.
If you’re ready to discover financial freedom, contact The High Yield Property Club and begin the journey of owning high social impact Rooming Accommodation today.