Class 1b Rooming House Investments
Growing problem or golden opportunity?
The demand for modern, safe and affordable single occupancy accommodation across Victoria is surging. Single households have increased by 20% in 5 years, with 26% of Victorians currently living alone. But nearly 74% of dwellings are 3 or more bedrooms, with only 5% having one bedroom. (Source: ABS)
This clear mismatch reveals a growing problem for tenants – and a golden opportunity for smart investors to consider investing in Class 1b rooming houses.
Why investing in Class 1b rooming houses can change your life and create a legacy
Unlike traditional property investments, which usually rely on long-term capital gains and are often negative cashflow and a burden to hold, Class 1b rooming houses generate exceptional cashflow, where the property more than pays for itself and allows you an opportunity to fast-track your financial freedom.
These properties are not just cashflow positive– they often deliver life-changing outcomes. By generating substantial returns, you gain the financial flexibility to build your portfolio faster and fund lifestyle choices, such as early retirement, private education for children, the boat you’ve always wanted or luxury travel. Our strategy focuses on building scalable, passive income streams that transform your financial future.
Results that speak for themselves
Compelling Investment Opportunity
Only 0.05% of Victorian properties are classified as rooming houses, providing a compelling opportunity to invest in a growing sector that delivers rental yields averaging 10% or higher, compared to 3% to 5% for traditional rentals.
(Source: ABS, CAV, SQM)
Exceptional Positive Cashflow
Quality rooming houses in Melbourne are obtaining a rental income of $150,000 per annum or more, providing exceptional positive cashflow compared to traditional investment properties which are usually negative cashflow.
Exceptional results rely on exceptional execution.
Compare the pair
4 Beds, 1 Ensuite, 1 Bathroom, Double Garage
2 x Income Streams
Melbourne
9 Studio Rooms with Kitchenettes and Ensuites
9 x Income Streams
Melbourne
A feel-good investment
While Class1b rooming houses deliver significant financial gain to investors, their positive impact extends beyond high yields to help tenants and the community at large battle significant social and sustainability issues.
- Affordable housing – rooming houses can play a key role in solving Australia’s critical rental crisis by offering quality, affordable single-occupancy housing solutions for a diverse range of quality, working singles looking for a safe and inviting place to call home.
- Sustainable living – accommodating multiple tenants under one roof encourages the shared use of resources, reducing overall energy consumption compared to each tenant residing in separate dwellings.
- Strong communities – rooming houses provide a sense of community for residents, reducing loneliness and providing opportunities to build friendships, while still enjoying their own private space.
Frequently Asked Questions
Keen to explore Class 1b rooming house investing?
Don’t go it alone. Discover why we’re the trusted rooming house investment experts or get in touch to book a no-obligation chat with our expert team.
