S2: EP31 Pros And Cons of Investing in Rooming Houses

In this episode, Rajan Sharma and I dive into the financials and management of co-living properties, focusing on six-bedroom and nine-bedroom homes. Rajan explains that a six-bedroom, six-bathroom property can generate around $93,000 annually in gross income, with net earnings between $25,000 and $30,000 after expenses.  

For a larger nine-bedroom, nine-bathroom property, the gross income can reach $140,000, with net returns ranging from $45,000 to $50,000, assuming we maintain high occupancy rates of 95% to 98%. He emphasizes that achieving these returns depends heavily on factors like the property’s location, management quality, and architectural design. Good design can significantly impact the property’s rental potential, with well-planned layouts and appealing aesthetics attracting more tenants.  

We also discuss potential pitfalls, such as the risk of not achieving full occupancy and the complexities of securing council approvals. Rajan underscores the importance of thorough planning and having an experienced team to navigate these challenges effectively. He contrasts his team’s approach with others in the market, who might face higher risks of delays and complications. This episode offers a detailed look at the opportunities and challenges in co-living property investments, highlighting the necessity of strategic planning, expert support, and thoughtful architectural design to maximize returns and ensure a successful venture. 

Click on the link below to download Australian Bestseller “A Millennial’s Guide to Property Investing” now!  

https://www.amazon.com.au/dp/B0CRF48GGR 

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Episode Highlights:  

• 0:00 Welcome to Help Me Buy Property Podcast 

• 2:58 Pros of Six Bedroom & Six Bathroom Investment  

• 8:38 Typical return on nine-bedroom, nine bathrooms  

• 14:15 Legal Aspects of Co-living Investment  

• 16:56 Architects— Costs and Durations  

• 18:50: In-house Architects and Masterplans  

• 20:10 Approval from Councils on Masterplans  

• 25:50 Working Relationships With Builders  

     

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