Are you tired of losing money on your investment property?
Low rental yield, high interest costs, piling bills, constant repairs and maintenance. Sound familiar?
THE PAIN
Every property investor’s struggle
It’s no secret - most property investors in Australia are bleeding cash💸, year after year.
You’re collecting rent, sure. But by the time you pay for insurance, council rates, land tax, mortgage interest, maintenance, property management fees, you’re tens of thousands of dollars in the red. 📈
And yet, this has somehow become the norm.😢
Negative gearing is sold as a smart tax strategy. But let’s be honest - you are still losing money.
Every year you’re out of pocket, hoping it’ll all pay off someday with capital growth.
But what if it doesn’t?
Melbourne’s property market has underperformed for years.📉 High interest rates, sluggish growth, compare to other states, it’s not the dream state it used to be.
You’re starting to ask yourself:❓
Is this really what investing is supposed to look like?
Even Warren Buffett says the #1 rule of investing is: Don’t lose money. And #2? Don’t forget rule #1.🔑
So why are we all still pretending this is the only way to invest in property?
Maybe you bought at the peak. Maybe your returns are flat. Maybe you’re sitting on a ticking time bomb 💣of losses, just hoping things turn around.
Selling feels like defeat. Holding feels like punishment.
You’re stuck in a system that doesn’t work anymore. 💔
And deep down—you know it.
“The first rule of investment is don’t lose money.” And if you ask about the second rule? “Don’t forget the first.”
THE MINDSET
Shift the mindset, break the stigma
So… a rooming house? Be honest — What’s the first thing that comes to your mind?🤯
Overcrowded, run down house? A magnet for problem tenants, drugs, mental health issues, unpaid rent?
It’s okay — that’s what we used to think too.
But what if we tell you it’s time to shift that mindset? 🧠
Now, take a moment and scroll through this gallery.
Surprised? 😯
That’s what a modern purpose-built rooming house looks like in 2025.
Nine fully self-contained studios. Leased out within a month of completion. Generating over $150,000 a year in gross rental income. And no — that’s not a one-off. It’s the new standard.
Sounds too good to be true?🤔
Yeah… that’s what we thought too when we first came across rooming houses.
We had the same assumptions. The same doubts.
But here's the truth: yes, there are still dodgy, unregistered setups out there — overcrowded run down homes with minimal oversight and maximum headaches.
But what we’re building is the complete opposite of that.
Our professionally managed, purpose-built rooming houses are home to long-term tenants: young professionals, essential workers, graduates, skilled migrants, and students — all looking for affordable, private accommodation in Melbourne’s middle-ring suburbs.
And they are lining up for them.👨👩👧👦
Which brings us to the next big question…
How strong is the demand for this type of accommodation? 🏨
The Demand
Demand for rooming house on the rise
Unless you’ve been living under a rock, you know we’re in the middle of a national housing crisis. 💥
Politicians love to say they have the solution — but let’s be real, if it were that simple, we wouldn’t be here.
So why is the crisis happening?
Here’s the short version:
Population Growth: Australia has one of the fastest-growing populations in the developed world. Net overseas migration topped over 500,000 👨👨👧👦👨👨👧👦 people in 2023 — and every one of them needs a place to live.
A Massive Productivity Problem: Our construction productivity 👷♂️👷♀️ has actually halved in the last 30 years, according to a recent Productivity Commission report. We’re building slower, less efficiently, and with far more red tape than ever before.
Rising Costs, Slim Margins: Interest rates are up, building costs are up, and taxes on property are up. The result? Many developers have just stopped — the numbers don’t stack up anymore.🛑
Public housing is vital for the most vulnerable, but it simply can’t be built fast or affordably enough to meet today’s demand. Chronic under‑funding, political red tape and long development lead times mean it lags years behind need.
“The commission found physical productivity – the total number of houses built per hour worked – has more than halved over the past 30 years”
Meanwhile, demand is still climbing.💹
And when demand keeps rising while supply dries up — you get exactly what we have now:
sky-high rents, record-low vacancies, and investors stuck in negatively geared properties that simply don’t perform.
So where does a rooming house fit into all this?🔑💡
Let’s look at the rental demand for studio and one-bedroom apartments — because that’s the closest market comparison to modern rooming house units.
Do a quick search online and you’ll find:
Studio apartments asking $350–$500 per week across Melbourne’s inner and middle suburbs.
Residential vacancy rate for one bedroom studio type accommendation is at 1.1% which means they are snapped up immediately.
Most major listing platforms show “time on market” for one bedroom studio listings trending under 14 days.
Extremely tight supply near transport, hospitals, universities, and major employment hubs.
And that’s exactly where we build.
We don’t just build rooming houses anywhere — we target high-demand areas, and we do it for a reason.
We understand the needs of our tenants:
A new migrant without a car 🚗who needs to walk to work, shops, and public transport.
A young professional saving for a house deposit who’s looking for affordability without sacrificing privacy.
A nurse 👩⚕️or tradie 👷♂️working long hours nearby who wants a safe, well-maintained home without the headaches of shared rentals.
This isn’t just about yield — it’s about solving a real housing need with the right product, in the right location, for the right people.
So yes — demand is strong. 💪And no — it's not slowing down anytime soon.
THE TEAM
We’ve been there, done that, again and again.
So who are we, and why should you listen to us?
We’ve been in the game a long time — from designing and building family homes, townhouses, to multi-unit developments. We know residential development and construction inside and out. The numbers, the margins, the pitfalls, the hidden traps — we’ve seen it all.
About 10 years ago, a client came to us with an idea 💡:
“Can you build me a purpose-designed rooming house?”
We said yes 👌.
And from that moment, we never looked back.
Since then, we’ve been designing and building rooming houses for clients across Melbourne — and we also own and operate a portfolio of them ourselves.
So no, we’re not some slick marketing company trying to sell you on the next trend.
We don’t just talk the talk. In fact, we don’t even like talking. We just walk the walk — quietly, consistently, and profitably.
Building a successful rooming house takes far more than a builder and a set of plans. You need a finely tuned process and a team who’s done it again and again over the years.
Because when it comes to rooming house development, there’s a long list of boxes to tick:
✅ Strategic site selection
✅ Location and amenity analysis
✅ Functional, low-maintenance design
✅ Rooming house planning approvals
✅ Building permits and compliance
✅ Construction management
✅ Leasing and tenant selection
✅ Ongoing maintenance strategies
We’ve built that A team.⭐
We’ve refined the playbook.🃏
And we know exactly how to make it work.🏆
Now, let’s be real:
Rooming house development isn’t for everyone.
It’s a specialised asset class, and like any form of property development, it comes with its own challenges, demanding hardwork, discipline and perseverance. But if you're ready to break free from the losses on your investment properties year after year, fed up with poor yields and endless maintenance headaches, and eager to build something that creates real impact while delivering solid returns, then this could be the opportunity you’ve been waiting for.
Well, you already know who to call.📱
Contact us.
hello@roominghousebuilder.com.au