Here's The Critical Factors You Need To Know When Evaluating Rooming Houses For Sale Brisbane
The Critical Factors You MUST Know Before Researching Rooming Houses For Sale Brisbane
There are only a handful of rooming houses for sale Brisbane each year. Because of the high yield returns, most investors who build rooming houses hold onto them.
Many of our investors revalue them once built for an equity uplift, which allows them to build more wholesale rooming houses and fast track their property porfolios.
The other strong reason why most investors hold on to the Rooming Houses in Brisbane they build is because it creates a legacy that they can leave to their family. Being in the Brisbane City Council catchment, these rooming houses are considered by many as blue chip property, that will have the incredible capital growth expected of a major capital city.
To discover the 14 intelligent reasons why savvy property investors love Brisbane Rooming Houses, check out our article here:
https://highyieldpropertyclub.com.au/rooming-houses-brisbane/
Rooming Houses For Sale Brisbane Are Rare, However Here Are A Few Exceptions…
Despite the excellent rental returns of Brisbane rooming houses, there are three main circumstances under which some investors may sell:
- Developers build solely to sell – buyers please beware!
- Change in family circumstances.
Some developers build rooming houses to “flip” them and turn a profit. In some instances, this can suit some investors if the return is genuine and reasonable.
Sadly, the build to sell or “flip” model can be misleading. For example, some developers will artificially inflate property prices by artificially inflating rental returns. For instance, some build to sell developers will offer free rent for a month for newly built properties in order to make it seem like the properties are profitable with high occupancy rates, allowing them to sell the rooming houses at ridiculously high prices. The High Yield Property Club does not condone this activity for any reason.
We understand the build to sell rooming houses industry very well in Brisbane. It is a very small industry. If you want to buy a rooming house that is already built, please contact us.
We work with developers who do not artificially inflate their prices, or engage in sub-par building practices in order to make the property look good for a quick sale. This can give rise to maintenance issues in the long term.
We have the data on rooming house sales in Brisbane over the last few years. We would be happy to share this with you. Please contact us for further information.
Already built rooming houses can be a great option to meet the specific needs of a particular investor.
The other reason why investors would offer existing rooming houses for sale is a change in family circumstances. Individual circumstances can have it’s own complexities, and that may cause and investor to put their Brisbane rooming house up for sale.
The Demand For Rooming Houses For Sale Brisbane
The housing crisis is menacing in major property markets worldwide, and the conditions are not promising in Australian property markets with increasing rents and high vacancy rates. With a projected shortage of 106,000 homes by 2027 caused by inflated interest rates, a significant jump in immigration, and community resistance to new developments, numerous households are already rethinking their living arrangements due to rental stress. This housing crisis has amplified the effects of the pandemic. As the demand for affordable housing continues to outpace supply, high net worth property investors are provided with a unique opportunity to meet the accelerated need for affordable housing.
There is some relief for residents in Australia. High Yield Property Club is working to mitigate the housing pressure by offering build to rent rooming houses, as well as rooming houses for sale. Brisbane, like other Australian property markets, will also face a dramatic shortfall of rentals within the next five years. While new dwellings are expected to come into the market, the sentiment from renters has significantly changed about the types of properties they are interested in. Investors offering affordable and high quality dwellings have soaring occupancy rates and the proportion of households that rent is growing across all age groups.
Due to these changes, renters are forced to choose between higher rental prices or non-traditional living arrangements. There are only a handful of rooming houses for sale each year in Brisbane due to the numerous benefits renters and property investors get from these high-performing assets. High Yield Property Club members enjoy 8%+ returns as the minimum gross rental yield and renters enjoy beautiful and modern living spaces designed for small households.
By investing in rooming houses in Brisbane with the High Yield Property Club, investors get newly built, modern properties on prime land within the Brisbane City Council area. High Yield Property Club properties have been achieving gross rental yields of over $90,000 per annum, and members have been able to do their own build to rental, “wholesale rooming house” construction.
This allows them to revalue the property once tenanted, and often time develop another wholesale rooming house to rent and revalue.
This cycle is how many of our High Yield Property Club members are able to fast track their portfolio growth
You May Not Get High Yields On Brisbane Rooming Houses For Sale
Something is important to conduct due diligence on when considering rooming houses for sale is the rental return.
Most rooming houses will be priced according to the rental yield they are getting, and may be calculated using a commercial capitalisation rate.
This means you will not get the full 8%+ return that you get with the High Yield Property Club wholesale rooming houses.
Rooming Houses For Sale Brisbane VS negative gearing.
Negatively geared property investors often get stuck in their portfolio building journey because they will either run out of capital, run out of serviceability, or both.
This stops their portfolio building in it’s tracks until they either sell an asset and replace it with high yield property, or if you have run out of equity only you will need to wait years for the capital growth to be enough to re invest.
Rooming houses are high-value investments which often offer positive cash flow. For most investors, positive cash flow is extremely important. Others wait for an increase in the intrinsic value of the property due to long-term property appreciation in order to consider their investment profitable. While different investors measure returns on investment differently, a lack of clarity in planning and strategy can lead to unexpected results such as financial distress.
Why Consider Build To Rent Rooming Houses With The High Yield Property Club?
Rooming houses in Brisbane is a very small industry, so it is important to work with people who understand the Brisbane rooming houses market inside and out.
At High Yield Property Club, we understand that owning a rooming house is more than purchasing a house and land, occupancy, maintenance, and tenant management. We have a huge ecosystem of professionals to ensure that you invest the right way, and mitigate any risks.
On average, the Gross Rental Yield for existing dwellings in Brisbane will be an estimated 4.19% by the end of 2023. In the current Brisbane property market, finding investment property with full ownership of the land and 4% or better in returns can be quite difficult. The High Yield Property Club only provides rooming houses that have 8% returns as the minimum gross rental yield, which is equivalent to $90,000 per annum. We develop the properties at wholesale rates, giving investors equity uplift shortly after completion and tenanting. As a result, our done-for-you, “arm chair” Rooming House Development allows investors to fast tract their portfolio building, maintain serviceability, and go about other business without worrying about cash flow or occupancy.
High Yield Property Club offers its members an alternative to invest in the real estate sector indirectly, allowing them to build passive income and replace their passive income faster.
Passive income is one of the major drivers for property investors, but investing in rooming houses Brisbane can help you replace your active income within a short period especially when you are getting 8%+ in rental returns. This gives you the financial muscle to fast track building your portfolio which, if invested wisely, will grow your legacy through generational wealth in your family.
Aside from personal benefits, rooming houses in Brisbane have a high social impact. Experts have forecast that the housing crisis could drag out, causing Brisbane to have a shortfall of 12,300 homes within five years. Rooming houses provide affordable quality housing, ensuring that residents of Brisbane have options beyond traditional housing.
The Alternative To Rooming Houses For Sale Brisbane
High Yield property Club can offer investors the opportunity to add wholesale rooming houses to their portfolio as a result of the right team, the right processes, and the right technologies. Beyond an excellent product, we give investors a piece of the pie in Brisbane, Australia’s third largest capital city, guaranteeing 8%+ in gross rental yields annually. We ensure that every rooming house is set for strong capital growth by working with experts to ensure that investors have high occupancy rates and high rental yields throughout their investment term.
Long-term area planning is vital in determining the intended use of immediate areas surrounding our rooming houses in Brisbane. Proximity to motorways, transport hubs, shopping centers, schools, and business areas as well as security are thoroughly considered for each rooming house to be constructed. To ensure that the rooming house has a long life span of profitability and value appreciation, careful planning and a forward-thinking approach to housing is vital.
In a constantly changing property market, the High Yield Property Club contributes to the widening of dwelling options available for renters in the Brisbane area, focusing on a less acknowledged demographic of single-person and two-person households. This option is for renters who are willing to live in a small, beautiful, and affordable space with modern amenities and access to major spaces of interest.
Social impact investing allows the High Yield Property Club and its members to generate financial returns and contribute to social and environmental needs in order to combat the current housing crisis. It’s a win-win for everyone, the community and tenants included. Our rooming houses look like traditional houses from outside, so they are aesthetically pleasing in residential Brisbane suburbs.
What We Do
Property investment does not have to be a full-time job for investors. While owning and managing rooming houses requires attention, you do not have to tend to your rooming house in Brisbane every day. We help busy professionals acquire rooming houses in Brisbane returning $90,000+ per annum per property. This strategy can fast track your property portfolio building, replace your active income quicker, create a legacy and helps solve the rental crisis.
Our specialist team works with you end to end to help create your 8%+ Return Rooming House.
We find the source a suitable block of land, help you select the builder and subsequent builder liaison, work with specialist property managers to have it tenanted, and educate investors along the way. High Yield Property Club Members have access to our Brisbane market intelligence as well.
Our specialist team is led by Kevin Doodney. Kevin Doodney is Australia’s leading expert in cutting edge 8%+ return residential property strategies shaping the future of housing. He has over 40 years of experience in real estate, and is the Founder & Chairman of The Future Housing Task Force and High Yield Property Club. Kevin has been involved with over 20,000 personal transactions and over $2 billion in real estate deals. In the last 12 years, Kevin has helped investors build over 1,000 rooms yielding 8% or better in high demand high growth sub-markets. Kevin has been featured on Channel 7 Better Homes and Gardens, A Current Affair, ABC Television, 4BC, The Courier Mail, Quest Newspapers and more.
Most investors do not have the expertise, contacts, know-how, and time to build a wholesale Rooming House, and unlock the power of this game changing strategy for their portfolio. That is why we offer a turn-key service to build you a Rooming House, which also helps to solve the rental crisis. We help you fast track your portfolio, create a legacy and make a difference.
To find out our current rooming house for sale Brisbane offerings, please contact us.
We will provide you with as much information as you need, and a consultation to assist you.
In the meantime, you can watch our investing in 8%+ return rooming house masterclass instantly. Click here to watch and get all of the details you need to know