Rooming House Investments — Build Direct & Maximise Yield

Rooming houses remain the highest-yielding strategy in Australian residential property — and for good reason. Rather than receiving a single rent from a single tenant, you collect individual rents from four, five, six or more tenants per property. The combined income dramatically outperforms a standard residential tenancy on the same land, often delivering gross yields between 8% and 14%.

BBD's bread and butter in Victoria is the licensed rooming house. We have built deep relationships with VIC-specialist builders who understand the compliance requirements — minimum room sizes, bathroom ratios, fire safety — and who price at wholesale builder rates. This is not a product sold through a project marketer. You deal directly with the builder.

James T. is one of BBD's most successful clients. He started with a single 6-room rooming house in Melbourne's west, followed by two more in the northern suburbs. Across three builds, James saved more than $60,000 in agent markups — money he reinvested into furnishing packages that lifted his per-room rents by $40–$60 per week. His portfolio now generates over $220,000 pa in gross rent from three properties purchased for a combined $1.9M.