Rooming Houses: The High-Yield Property Strategy Most Investors Miss Out On
If you're not earning double-digit rental returns in 2025, you're already behind. With Australia's rental crisis deepening and housing affordability shrinking, savvy investors are turning to rooming houses — modern, multi-tenant properties that deliver up to 12% rental yields and $1,500+ in weekly gross income.
But here’s the challenge: with average build costs exceeding $950,000, many investors are locked out of this powerful asset class. That’s where TIC Property steps in — offering the same benefits of legal ownership and passive income, starting from just $65,000*.
What Is a Rooming House?
A rooming house (also referred to as a Class 1B dwelling) is a fully compliant residential property that accommodates multiple tenants under separate leases, with shared amenities. These aren’t outdated boarding houses — they’re professionally managed, code-compliant properties meeting modern demand for affordable living.
According to SQM Research, Australia’s vacancy rate sat at just 0.9% in June 2025 — highlighting extreme pressure on rental supply. Rooming houses help solve this while generating premium income for investors.
Why Investors Are Turning to Rooming Houses
Rooming houses are fast becoming one of the most lucrative strategies in the property market. Here's why:
- $1,200–$1,500+ in weekly income per property
New Property Australia
- 8%–12% gross yields
The Hopkins Group
- Multiple income streams = lower vacancy risk
- High demand from singles, students & key workers
- Significant depreciation and tax advantages
But most investors can't afford to go all-in at $950K+. That’s where fractional property ownership through TIC becomes a game-changer.
Can’t Afford the Whole Asset? Invest Fractionally
TIC Property (Tenants in Common) allows investors to legally co-own high-yield real estate, starting from as little as $65,000*. You can buy a 5%–35% share in a high-performing property and still enjoy:
- Your name on the legal title
- Monthly rental income proportional to your share
- Capital growth over time
- Tax benefits and depreciation claims
- Hands-free management — no tenants or builds to manage
This is not a pooled fund. You co-own real, registered real estate under a legally binding title deed.
Build Property Inside or Outside Your Super
With TIC Property in your SMSF, you can build wealth inside your super while remaining fully compliant with ATO guidelines. Whether you're investing personally or via your fund, you can:
- Own brand-new, high-yield residential property
- Earn regular income inside or outside super
- Access tax-advantaged capital gains
Find out how: Build property inside your super
Rooming House vs TIC Property: Quick Comparison
| Feature |
Rooming House |
TIC Property |
| Investment Amount |
$950,000+ |
From $65,000* |
| Legal Ownership |
100% Title |
5–35% Title Share |
| Rental Income |
$1,200–$1,500+/week |
Proportional to Share |
| Management |
Self-managed |
Fully managed |
| SMSF Eligible |
Yes |
Yes |
The Bottom Line: Invest Smarter. Start Smaller.
Rooming houses are generating 3x the income of standard rentals — but the high entry cost keeps most investors locked out. TIC Property opens the door.
Whether you’re building inside your super or investing with cash, this model gives you all the benefits of real ownership — monthly income, capital growth, and tax benefits — without the barrier of full property cost or stress.
Take the Next Step
*$65,000 entry is indicative and subject to availability. TIC Property is not a managed investment scheme. Returns are based on historical performance and are not guaranteed. This content is for educational purposes only and does not constitute financial advice.
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